Targeting 25% move on $PPC - PT: ~23Breakout from descending wedge on weekly chart. Great fundamentals behind it. Looking at a reversion back over ~20 with final target around ~23.
1PPC trade ideas
PPC stock may be ready to rule the roost againPilgrim's Pride Chicken is the largest chicken producer in the United States. Not to state the obvious but..."everyone loves chicken". During Super Bowl Sundays, 1.25 billion chicken wings are consumed in the United States. Plus, every other day of the year is a great day for some yummy, healthy white meat of the bird, chicken. PPC has had some negative news in the past, as recently as 2008. Chicken is a dirty business and this company has weathered a powerful storm to here. If the support holds, look to buy and hit the analysts' price target of $25 at least. Do not trust regular analysis on this stock. Bad news is hard to live down.
This company does not pay dividends.
PPC - Pilgim's Pride hurt - oversold | long contrarian viewPilgrim's Pride fall from grace came following a proposed securities class action alleging the poultry giant concealed a price-fixing scheme with other broiler chicken companies, that resulted in a stock price plunge when revealed. The case is Hogan v. Pilgrim’s Pride Corporation et al, case number 1:16-cv-02611, US District Court of Colorado. The fall is complete reversal following its double-top high at $38, in December 2017. The 2017 rally was founded on excellent fundamentals: a stock that trades at 7 times earnings, half of sales, consistently profitable, cash generative, well priced to sector and leading industry player.
The stock has nosedived. Today, at $20, is a level I think investor will be tempted to reenter at. A big, round number, it marks both the summer 2007 low, and close to the upward trend since 2014. There is a good chance that it can move lower to the major support at $18, but with a target of $25 I think a buy now at $20 is worth the return to risk.
Long trading setupPPC has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 22.82, a stop order could be placed below this zone. We notice that large players showed an interest for PPC in the last couple of days, which is a good sign.
