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April 26, 2023
Pay attention to the following consumer_cyclical stocks approaching critical price targets: Yum! Brands Inc, Tapestry Inc, MercadoLibre are the ones to watch.
A recap of yesterday's session: Leading equity indices in the US declined as S&P 500 slipped 1.58% and closed at 4,071.63. After dropping 1.98%, Nasdaq closed at 11,800.
What is a Price Target?
A "price target" is an estimate of the future price of a stock based on earnings forecasts and assumed valuation multiples. Price targets are typically generated by respected market analysts who believe a stock to be fairly valued relative to its projected and historical earnings. Target prices are used to evaluate stocks and can help investors evaluate the potential risk/reward profile of a stock. Check out this rundown of consumer_cyclical stocks and their price targets.
Yum! Brands's price target: $137.11 | Last close: $137.81 | Daily range: $137.35 – $139 | Off hours: $137.81
Yum! Brands Inc could begin to recover as it approaches significant support, now 70 cents away from $137.11. Dipping below could be an indication that further losses are ahead.
Though in the midst of a 12 day uptrend, gaining a total of 5.12%, ($7.8), the prevailing bullish trend is beginning to fade following yesterday's downbeat session. An influx of sellers pushed Yum, a fast food corporation operating the KFC, Pizza Hut and Taco Bell brands, to session lows around $137.35 while establishing a $137.35 to $139 session range yesterday. Yesterday's trading volume was 1.15 million shares which is slightly under the 21-day average of 1.37 million.
Tapestry active price target: $39.79; currently at $40.33
Early in yesterday's session, Tapestry dropped to $40.08 from $41.92 at the end of Monday, before closing at $40.33. During the session, it lost 3.79%. Yesterday's 3.79% loss extends a 5 day bearish run in which Tapestry had already lost $1.17 from its share value. Yesterday's trading volume was 2 million shares which is slightly under the 21-day average of 2.74 million.
The modern luxury accessories and lifestyle brands specialist has fallen back around 10.08% from the significant high of $46.62 set 2 months ago. Tapestry is currently trading with a market cap of $9.52 billion with an average daily trading volume of 2.74 million shares. So far this year, it has been doing worse than the S&P by 3.77%. Tapestry's last revenue report was $2 billion with an EPS of $1.36.
Tapestry's bearish trend is facing a possible turning point at $39.79, which is only 54 cents away. Will be interesting to follow.
Tapestry disclosed a quarterly dividend of 30 cents per share on Tuesday, February 21st that was paid on Monday, March 27th to all shareholders of record up until Friday, March 10th. Based on current prices, the company's decision thereby provides Tapestry investors with an annual dividend yield of 2.98%.
MercadoLibre's price target: $1,217.32 | Last close: $1,229.55 | Daily range: $1,227.58 – $1,261.78 | Off hours: $1,243
Early in yesterday's session, MercadoLibre dropped to $1,227.58 from $1,273.62 at the end of Monday, before closing at $1,229.55. During the session, it lost 3.46%. MercadoLibre has dropped $47.85 over the past 6 days; yesterday's session continued this downtrend. Yesterday's trading volume was 338,248 shares which is slightly below the 21-day average of 344,893.
The e-commerce marketplaces operator is now trading 3.62% below the significant high of $1,321.47 it set around 8 days ago. The company has a market cap of $61.79 billion with an average daily volume of 344,893 shares. So far this year, it has performed better than the Nasdaq by 32.65%. $1.91 billion was MercadoLibre's last reported revenue with $3.25 being the current EPS.
A persuasive break of this target could lead to higher losses.
