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What Do the Moving Averages of Diamond Foods and Peers Indicate?

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Moving averages

As of December 3, 2015, Diamond Foods closed at $39.8. It was trading 17.7% above its 100-day moving average, 9.2% above its 50-day moving average, and 3.1% below its 20-day moving average. The stock fell 1.1% during the last month. The company has shown positive earnings per share growth in the last fiscal year, contributing to the stock price’s performance.

Diamond’s peers’ in the industry include B&G Foods (BGS), ConAgra Foods (CAG), J.M. Smucker (SJM), and Flowers Foods (FLO). B&G Foods (BGS) closed at $36.2, or 7% above its 100-day and 0.7% below its 50-day and 20-day moving average, and fell 0.5% during November, respectively. ConAgra closed at $40.0, or 5% below its 100-day, 2.5% below its 50-day moving average, and 1.9% below its 20-day moving average. It fell 0.24% during November.

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Also, Smucker is trading 5.2%, 2.8%, and 2.1% above its 100-day, 50-day, and 20-day moving averages, respectively, and has gained 2.7% in the last month. Flowers Foods rose 16% in November and is trading 7.7%, 12.6%, and 9.4% below its 100-day, 50-day, and 20-day moving averages, respectively. SJM and FLO closed at $120.3 and $22.2 on December 3, respectively.

The PowerShares Dynamic Food and Beverage (PBJ) invests 3.76% in DMND, 2.6% in CAG, and 2.8% in FLO, respectively. The ETF is trading 1.5% below its 100-day and 50-day moving averages, and 1.1% below its 20-day moving average. It fell 3.9% during the last month. Finally, it closed at $32.3 on December 3.

Analysts’ estimates

Analysts’ estimates indicate upsides of 7% for BGS, 13% for CAG, 7% for SJM, and 11% for FLO from their current level on December 3 for the next 12-month period. Meanwhile, Diamond Foods has already beaten analyst estimates of $36.8 on December 3.

As of December 3, DMND, BGS, SJM, CAG, and FLO reported positive YTD (year-to-date) returns of 41.2%, 21.3%, 19%, 10%, and 15.6%, respectively. The ETF also reported positive YTD returns of 5.9%.

In the next part of the series, we’ll see how the company performed in its last reported quarter and what led to the stock price performance.

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