Bill Gunderson

“It makes perfect sense to expand a program that's working well in California, Arizona and Michigan, enabling the homeless, elderly and disabled to purchase prepared meals with SNAP benefits in a restaurant environment just as they can purchase ingredients in a supermarket.” A spokesman for YUM! Brands.

There are a lot of lessons to be learned from the craziness that’s going on in the market right now. And we’re going to take a look at the facts as they present themselves at the current moment.

We are finally starting to see some of the leading stocks begin to rollover a bit as are now in earnings season.

Last week was the kick-off of earnings season. Several big companies reported earnings: Alcoa (AA), YUM! Brands (YUM), J P Morgan (JPM), and Wells Fargo (WFC) were the biggest ones.

So I thought this would be a good time to analyze the company that deals with the four food groups here in America: fried chicken, pizza, root beer, and tacos—don’t tell me you never eat this stuff! We’re talking about YUM, the owner of KFC, Pizza Hut, Taco Bell, Long John Silvesr, A&W, etc.

Data From Best Stocks Now App

Analysts were expecting this quarter’s earnings of $0.93 per share on the stock. Well Yum reported last week and they fell short. Am I surprised? No, and here’s why.

Last week on my daily radio show, I once again went through all of the numbers on stockS that I personally require. My Best Stocks Now™ app requires that a stock first is a superior performer in the long term, intermediate term, and short term. NO laggards allowed!

Second, the stock must makes sense from a valuation point of view. In other words, there has to be justification for the stock going considerably higher over the next three to five years, no exceptions!

And thirdly, a stock has to have a healthy, vibrant stock chart. None of this sideways or sloping downward business (this is why I never bought Apple all the way DOWN from 705 down to 385).

Now let’s look at the analysis I did of YUM! Brands recently before they reported earnings last week, so you can see why I am not surprised that YUM fell short.


Data from Best Stocks Now App

Bill Gunderson

Bill Gunderson is the CEO and Chief Market Strategist of Gunderson Capital Managment in San Diego, CA. He is also a professional money manager, former research analyst, author of Best Stocks Now.

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