Home Stock Kellogg stock price prediction as shares edge lower despite solid FQ3 results

Kellogg stock price prediction as shares edge lower despite solid FQ3 results


On Thursday, Kellogg Company (NYSE:K) shares edged lower by 1.37% despite reporting better-than-expected fiscal third-quarter results. The company announced its most recent quarterly results before markets opened, beating analyst expectations on revenue and earnings.

Kellogg posted FQ3 non-GAAP earnings per share of $1.09, beating the average for analyst expectations of $0.93. On the other hand, its GAAP EPS of $0.89 lagged the Street forecast of $0.91, while revenue for the period increased by 5.5% from the same quarter a year ago to $3.62 billion, exceeding consensus analyst expectations by $80 million.

Kellogg shares continue to trade in a choppy pattern formation, swinging to a net gain of about 1.61% this year whilst falling 1.79% over the last 12 months.

Is Kellogg undervalued?

From an investment perspective, Kellogg shares trade at compelling trailing 12-month and forward P/E ratios of 16.53 and 15.22, respectively. Therefore, the stock could gain the attention of value investors.

On the other hand, analysts predict its earnings per share to grow by 32.90% this year before rising at an average annual rate of 3.11% over the next five years. 

Kellogg’s EPS increased at an average yearly rate of 16.60% over the previous five years, thus implying a decelerating growth.

As a result, growth investors could opt for alternatives in the market.

Source – TradingView

Technically, Kellogg shares seem to be trading within a gently descending channel formation in the intraday chart. However, the stock has recently pulled back off the 100-day moving average after finding solid resistance.

Therefore, with shares far from reaching oversold conditions, investors could target extended pullbacks at about $61.22, or lower at $59.61.

On the other hand, if the pullback ends prematurely sparking a rebound, the stock could find resistance at $64.23, or higher at $65.70.

Time to take profits?

Although Kellogg shares are down 1.61% this year, the stock recently gained 3.33% between the 29th of October and the 3rd of November. 

Therefore, with shares still far from reaching oversold conditions, the stock could fall further in the coming days. As a result, it may be time to swoop for some profits.

The post Kellogg stock price prediction as shares edge lower despite solid FQ3 results appeared first on Invezz.

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