Lancaster Colony’s moving averages
Lancaster Colony Corporation’s (LANC) stock closed at $101.68 on Friday, January 29, 2016. LANC is trading 3.9% below its 100-day moving average, 9.9% below its 50-day moving average, and 11.3% below its 20-day moving average. The stock price has risen by ~3% in the last two months, and the positive trend in earnings growth is benefiting the stock. Lancaster Colony’s peers in the industry include Mondelez International (MDLZ), General Mills (GIS), and Kellogg (K).
Mondelez (MDLZ) closed the day at $43.1, which is 1.5% and 0.4% below its 100-day and 50-day moving averages, respectively. It is trading 3.0% above its 20-day moving average. The stock has fallen by 3.4% in the last two months. General Mills (GIS) closed at $56.51, which is 0.8% below its 100-day moving average, 1.0% below its 50-day moving average, and 1.5% above its 20-day moving average. There hasn’t been much change in the stock price in the last two months.
Kellogg is trading 5.6%, 4.0%, and 2.8%, respectively, above its 100-day, 50-day, and 20-day moving averages. It has risen by 2.3% in the last two months. Kellogg closed at $73.44 on January 29. The PowerShares Dynamic Food & Beverage Portfolio (PBJ) invests 3.1% of its holdings in LANC. The ETF also invests 5.0% of its holdings in MDLZ and 5.1% of its holdings in GIS. The ETF is trading 2.1% and 1.1% below its 100-day and 50-day moving averages, respectively. However, PBJ is trading 1.9% above its 20-day moving average and closed at $31.57 on January 29.
Analysts’ estimates indicate upsides of 11.3% for MDLZ, 3.8% for GIS, and 8.6% for LANC from their current levels on January 29 over the next 12-month period. Meanwhile, Kellogg has already beaten estimates by 1.4%. As of January 29, Kellogg has reported a positive YTD (year-to-date) return of 1.6%, while MDLZ, GIS, and LANC have reported returns of -3.9%, -2.0%, and -12%, respectively. Also, PBJ has reported a YTD return of -2.0%.
In the next part of this series, we’ll analyze how the company performed in its recently reported fiscal 2Q16, what it projects for fiscal 2016, and analysts’ recommendations for the stock.