With shares of Kellogg Company (NYSE:K) trading at around $56.15 is KEG an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
Kellogg is constantly thinking of new ways to grow. While investors look at this company as a dividend play with a 3.10 percent yield, Kellogg is very innovative. They have a slate of new products being introduced, including Mini-Wheats Crunch, Pop-Tarts Oatmeal Delights, Scooby Doo cereal, Special K Chocolate Strawberry cereal and Kellogg’s Brown Sugar Cinnamon Jacks. The Mini-Wheats Crunch will offer a sweet taste and fiber, which is a key combination in today’s market. The Scooby Doo cereal will offer whole grain and only six grams of sugar without sacrificing taste. Out of these five products, at least one of is likely to be a big hit. Kellogg already had a big hit recently with Krave cereal. It was the most successful cereal launch in 20 years. Kellogg hopes to build on that momentum, and they probably will.
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While things are looking up for Kellogg, there are some concerns. Let’s take a look.