The McCormick & Company Incorporated (MKC) shares are trading at higher $178.54 and the avg recommendation for the stock is Hold. The current analyst price target stands at $145.30.
To add more color to this target, the company’s high over the last year is $180.38 and the low is $112.22. Over the last 52 weeks, MKC is down -1.02% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, MKC reported a profit of $469.9 million. McCormick & Company Incorporated also saw revenues increase to $1.21 billion. In addition, MKC has free cash flow of $6.3 million as of 02-2020 The company’s EBITDA came in at $236.1 million which compares well with its peers.
MKC booked profit margins of 13.10%, its Return on Equity (ROE) is 20.20%, and its Return on Assets is 6.70%. All told, it is clear that, MKC needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MKC has a short ratio of 4.55 and outstanding shares of 133.00M.
MKC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.66 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 5.20. McCormick & Company Incorporated MKC also noted assets of $10.49 billion at the end of the last quarter. Investors should also keep an eye on sector updates as MKC has historically followed its peers on positive news.
All told, McCormick & Company Incorporated MKC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MKC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
McCormick & Company Incorporated MKC is now commanding a market cap of 23.96B and a float of 130.44M. MKC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MKC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in MKC, either long or short, and we have not been compensated for this article.