YUM - Yum! Brands: Wait For A Better Entry Point

2024-03-15 09:21:07 ET

Summary

• Yum! Brands stock has had a strong upward trajectory over the past decade, but was impacted by the Covid-19 pandemic in 2020.
• The stock is currently at a resistance zone and is overvalued based on relative valuation metrics, suggesting it may be too late to buy.
• Investors should wait for a better entry point, potentially around the $107 support zone, before considering buying the stock.

Investment Thesis

Yum! Brands, Inc.(YUM) together with its subsidiary, operates and franchises quick-service restaurants globally. Its stock has been on an upward trajectory over the last decade, something which was partially cut short in 2020, perhaps by the Covid-19 pandemic. The shares have gained about 159% over the last decade, which I believe is a good run, and it could have been better without the pandemic....

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