And the maker of Twinkies, Ding Dongs, and other snacks could rise even more due to strong demand and innovations like a “green” bakery. But another likely reason is Big Money lifting the stock.
Hostess Brands Draws in Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Hostess Brands has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals TWNK has made the last year.
The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com
In the last year, the stock attracted 26 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
Outperformance is important for leading stocks.
Hostess Brands Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Hostess Brands has been growing sales and earnings at double-digit rates. Take a look:
Source: FactSet
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, TWNK has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
TWNK has a lot of qualities that are attracting Big Money. It’s made this list four times since the brand remerged in 2015, with its first appearance on 01/05/2021…and gaining 55.1% since. The blue bars below show the times that Hostess Brands was a top pick:
Source: www.mapsignals.com
It’s been a top stock in the consumer staples sector according to the MAPsignals process. I wouldn’t be surprised if TWNK makes additional appearances in the years to come. Let’s tie this all together.
Hostess Brands Price Prediction
The Hostess Brands rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in TWNK at the time of publication.
Learn more about the MAPsignals process here.
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This article was originally posted on FX Empire
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Source: https://finance.yahoo.com/news/big-money-eats-hostess-brands-121052816.html