Trade-Ideas: Yum Brands (YUM) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Yum Brands as such a stock due to the following factors:
- YUM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $216.8 million.
- YUM is up 4.6% today from today's close.
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More details on YUM:
YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants. It operates in five segments: YUM China, YUM India, the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The stock currently has a dividend yield of 2.7%. YUM has a PE ratio of 33. Currently there are 6 analysts that rate Yum Brands a buy, no analysts rate it a sell, and 10 rate it a hold.
The average volume for Yum Brands has been 5.3 million shares per day over the past 30 days. Yum has a market cap of $29.7 billion and is part of the services sector and leisure industry. The stock has a beta of 0.82 and a short float of 2.1% with 2.58 days to cover. Shares are down 6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Yum Brands as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- YUM's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 2.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 4.2% when compared to the same quarter one year prior, going from $404.00 million to $421.00 million.
- Net operating cash flow has significantly increased by 64.77% to $870.00 million when compared to the same quarter last year. In addition, YUM BRANDS INC has also vastly surpassed the industry average cash flow growth rate of 1.72%.
- YUM BRANDS INC has improved earnings per share by 6.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, YUM BRANDS INC reported lower earnings of $2.29 versus $2.36 in the prior year. This year, the market expects an improvement in earnings ($3.15 versus $2.29).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, YUM BRANDS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full Yum Brands Ratings Report.
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