Shares of Kraft Heinz (KHC) are up 18.80% since bottoming on May 2, 2018, and in my opinion, now is a good time to lock in any gains you may have and sell the shares. The company has not been able to grow earnings consistently over the last five years, and the forward looking growth ratios look weak, which will put future downward pressure on the share price. I lay out my bearish argument for the company below by reviewing some pertinent fundamental and technical aspects of the stock.
Momentum Growth Quotient
Over the last few months, I have developed a new approach for my fundamental analysis of stocks: the Momentum Growth Quotient (MGQ). The MGQ is the key metric that I use to gauge the financial health of a company and its potential future growth prospects. The MGQ is calculated using the following company financial data:
