March Market Madness: Kraft Foods (KFT)

March 22, 2011 2:20 pm

As we mentioned earlier, this month we are going to be looking at the stocks that make up the DJIA. . Next up Kraft Foods (KFT).

The score tells the story here. a -1.0 translates to a Strong Sell in our system. While fundamentals have a 1.1 score, the 5 year average EPS growth rate of -3.5% is pitiful. That is with revenues growing at a healthy clip. Overall, the high input prices for food have been a problem for Kraft.

Shares are still above their long-term trend support levels, making it seem to be in a general consolidation. Yet moving below the 50-day is not a good sign as general buying as shown through the Volume Pressure is rather anemic.

If a 3.78% dividend yield is exciting, then perhaps a slow mover like this may be something to research further, otherwise what is the point? It looks like investments in Kraft may be dead money for now.

KFT 20110317

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