<center>https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/mck.png</center> <br/><p>McCormick (NYSE: MKC) manufactures, markets, and distributes spices, seasoning mixes, condiments such as Zatarain's, Lawry's, Old Bay Seasoning, French's, Frank's Red Hot, Mojave Foods, Cattleman's.</p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-214-1024x382.png" alt="" class="wp-image-3356" />
<p>McCormick announced fourth quarter earnings on Thursday and reported sales of $1.50 billion vs expectations of $1.55 billion and earnings per share $1.67 vs expectations of earnings per share of $1.70. McCormick cited higher marketing and freight cost and weakness in Asia and Europe as some of the reasons for the lowered numbers. </p>
<p>NOTE: had it not been for their acquisition of the Frank's and French's brands in the summer of 2017, sales and earnings would have been lower.</p>
<p>McCormick projected that sales will grow at just a 1% to 3% rate and earnings of $5.17 to $5.27 per share for 2019, lower than expectations of $5.50 per share.</p>
<p>Needless to say, Wall Street wasn’t happy and the stock fell 10%, its worst sell off since 1980. </p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-216-1024x481.png" alt="" class="wp-image-3358" />
<p>McCormick is in the consumer stable sector a slow-growth defensive stock. And despite the haircut in price, a P/E of 23.6 still makes McCormick a bit overvalued, which is why Wall Street once McCormick to continue to acquire other companies. Previous acquisitions include:</p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-215-1024x346.png" alt="" class="wp-image-3357" />
<p>However, as you become bigger and bigger, it becomes a law of numbers game. And when you factor in their debt and the cost of debt increasing, it’s going to be difficult to continue to grow like they have in the past. </p>
<p> So where might price head next, lets go to the charts to find out?</p>
<p>Although price broke the monthly up trendline,</p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-217-1024x480.png" alt="" class="wp-image-3359" />
<p>There is a monthly demand zone right below. </p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-218-1024x478.png" alt="" class="wp-image-3360" />
<p>Because that was just a big red candle the momentum has shifted to the downside. Thus, if the demand at $116 is breached, the chart suggest price will then head down to the monthly demand at $90. </p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-219-1024x480.png" alt="" class="wp-image-3361" />
<p>This post is my personal
opinion. I’m not a financial advisor, this isn't financial advise. Do your own
research before making investment decisions.</p>
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<center><em>Published by <a href="https://mentormarket.io/rolland">Rolland Thomas</a>
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