Bill Gunderson
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“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.

Performance

Data from Best Stocks Now App

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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. http://www.pwstreet.com