Calling all CHD believers. Profit awaits!Technical Reasons
Momentum and RSI Strength: CHD’s RSI sits at 66.77, just shy of overbought territory, indicating strong bullish momentum but still room to run before a potential cooldown
Golden Cross Confirmation: The 50-day moving average ($103.48) has recently crossed above the 200-day moving average ($103.50). That’s the technical analyst equivalent of shouting, “Buy this thing!”
Price Breakout: CHD is trading at $109.02, significantly above both its 50-day and 200-day averages. It’s also near its 52-week high, suggesting breakout potential as investors chase the highs
Fundamental Reasons
Earnings Beat: In its most recent earnings report, CHD outperformed expectations with an EPS of $0.79 versus the consensus of $0.68. Revenue growth of 3.8% year-over-year reflects solid demand for its consumer products
MARKETBEAT
High Institutional Ownership: With 89.36% of shares held by institutions, the smart money clearly believes in CHD. When the big guys pile in, you don’t bet against them
Resilient Margins in Consumer Staples: Gross margins of 45.65% and an operating margin of 18.56% indicate that CHD’s pricing power remains intact despite rising input costs
Potential Paths to Profit
Buy the Shares (Lowest Risk): Snatch up CHD shares directly and let the consistent growth and dividends work their magic. Easy and drama-free.
Play the Options Game: Grab some call options (January 2025 $110 strike). They’re relatively affordable and offer great upside if CHD continues its climb.
Sell Cash-Secured Puts: Bet on CHD staying above $100. You pocket the premium and, worst case, end up with shares at a discount.
Disclaimer: We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.
