Summary
- Kraft-Heinz Stock may have reached a bottom at under $43/share just before Christmas.
- Given all the negativity and resulting massive decline in its stock value, it would only take a few decent financial results, for this stock to turn around and rally.
- The prospect of the now very mature recovery stalling out, giving way to another economic downturn will also help Kraft-Heins outperform market in next five years.
- Some positive surprises on revenue side may come from growing e-commerce presence in coming years, although profit margins may not be all that impressive.
I bought Kraft-Heinz (KHC) stock back in early December, thinking that the selling is overdone, therefore a good time to get in, within the context of my core belief, namely that we are in the very late stages of the current recovery, therefore it is time to start shifting one's portfolio to defensive stocks. Of course, as is rather often the case with me, I found myself moving a bit too early, given that I am currently down about 8% on this investment. We should keep in mind though that I intend to keep this stock for about five years as I stated when I bought into this stock, which is about how long I figure it will take for us to experience another economic downturn and then enter a new recovery. I never thought that I will be able to pinpoint the bottom for this stock, and I am not sure whether we reached a bottom just recently, when it was down to under $43/share. I do think, however, that there is very little downside left for this stock and recent market activity may suggest that investors increasingly may agree with me.
