Kraft Heinz Co. (KHC) – bought @31, it went up to $39 in 8 weeks = 25.8% return

We recommended the stock back in November, 2020 as a great long-term value play, and as one of our favorite picks in the Consumer staples sector, as we are seeing this as a great turnaround play. We noted that the price was re-testing the strong support around the $31 mark and that if the price holds its ground around the support that would serve as a great buying opportunity for our followers. We recommended for our clients to wait for the price to start moving up from the above-mentioned support before committing fully to the stock and opening their long positions. The anticipated price development to the upside occurred shortly thereafter and the stock moved 25.8% higher in less than 8 weeks. The stock is part of the XLP, which tracks a market-cap-weighted index of consumer-staples stocks drawn from the S&P 500. XLP delivers a representative if slightly conservative basket of consumer-staples firms. Because XLP pulls its stocks from the S&P 500 rather than the broad market, it holds far fewer names than our benchmark, producing somewhat-concentrated exposure. The fund’s holdings are nearly all large-caps, which investors may appreciate for their familiarity and stability. XLP seeks to provide exposure to stocks in the following industries: food and staples retailing, beverage, food products, tobacco, household and personal products. The index is reconstituted and rebalanced on a quarterly basis. Through our correlation-confirmation approach we compared XLP’s price performance to the XLV Healthcare Select Sector SPDR ETF, and used the strong and positive 10-year correlation of 75% between the two indices in order to validate our market recommendations.

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