Here is another point that I would like to make. I hear some investors say "Don't get sore, buy some more." This is averaging down -- it is a cardinal sin in my book to buy more of a stock that just reported bad news.
When a stock or a company has lost the momentum that has been driving it higher, it's very difficult to get it back -- and if it doesn't have it, you want to avoid the stock.
So let's recap.
YUM has good performance in the long term but not in the short term. The valuation of YUM is an A-, which isn't too bad, but it also has a high PEG ratio that I do not like. Third, I do not like YUM's stock chart at all.
Out of the 3,570 stocks in my database, YUM comes in at 1,510. Let's focus on the top 200 to 300 and leave the duds alone. This continues to be a raging bull market that has taken the S&P 500 from 660 to 1700.
This bull will not last forever, however. It is important to take advantage of the stocks that are working in this current market and leave alone the ones that are not.
Data from Best Stocks Now App
This article was written by an independent contributor, separate from TheStreet's regular news coverage.