Score 9.6 (out of 10): YUM! BRANDS poised to seasonally rally by +3.7% during the month of
November

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What’s Going On Here?

Yum Brands Inc announced Monday it has sold its KFC restaurants and franchise in Russia to a local buyer as one of the world’s largest restaurant companies plans to fully exit the market over Moscow’s invasion of Ukraine. The company ceasing operations in less profitable markets may be a positive sign that it is focusing on its core business.

Why Now?

YUM! BRANDS indicates an interesting seasonal (monthly for November) set up. During similar occasions, YUM! BRANDS shares had a median return of +3.7%, over the following 1 month – based on 9 historical occasions with 9 of those showing positive returns (100%). This buy signal for YUM! BRANDS received a high score of 9.6 (out of 10). This insight was generated with last price of 112.27.

What’s This Asset About?

YUM! BRANDS is in the Retail-Restaurants sector. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: YUM US.

What’s My Risk / Reward and Time Horizon?

We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 116.39 (+3.7%) has been reached. Based on YUM! BRANDS’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 108.37 (last price at 112.27), which is equivalent to a -3.5% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

6.2% (November-2021), 0.3% (November-2020), 3.1% (November-2019), 6% (November- 2018), 3.7% (November-2017), 5.2% (November-2016), 3.3% (November-2015), 7.1% (November- 2014), 3.4% (November-2013).

Historical Chart:

Summary:

NameYUM! BRANDS
ViewUp
Star (1 to 10)9.6
Target+3.7%
Time1 month
Hit Rate100%

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