MCCORMICK & CO INC

146.13 -5.24 (-3.59%) Buy

MKC investors take a moment to reassess their portfolio allocation

13 min read

MCCORMICK & CO INC was among the worst performers on Monday. It delivered -3.59% to close at 146.13. On a day when the overall market breadth was 34%, it closed higher than 12% of the market. In comparison, the benchmark SP500 index closed today at -0.0191%.

[Themes containing MKC]

Buy-and-Hold investors in MKC experienced a maximum drawdown of -6.22% over the last three months. It delivered +11.35% during this strong bullish trending period. There were no short signals during this period, while the long signal generated good profits of +11.35% for investors.

Trend

MKC has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 23 Jan, 2018 to 13 Dec, 2018. Over the last 2 years 11 months and 10 days, MKC outperformed the SP500 index on 55% days.

During the last three months MKC was mostly profitable and delivered on average +0.18% per day. It's best return during this period (of +3.08%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -3.59%) was on Monday, 17 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 28 Sep, 2018 and went on till 8 Oct, 2018. This bullish trend returned +5.94% to investors.

The last 12 months saw MKC's investors making profits in 9 months and incurring losses in 3 months. During the last year, MKC delivered profits in more months than SP500 index. MKC significantly outperformed SP500 index in Jun 2018, when it returned +14.94% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. MKC had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Jun 2018 to Dec 2018) during which period it delivered +42.09%. It is interesting to note that both MKC and SP500 index significantly outperform during months when quarterly/annual results are announced.

Too many people spend money they earned..to buy things they don't want..to impress people that they don't like.
-- Will Rogers

MKC is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in MKC's volatility from 26 Sep, 2018 to 28 Sep, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that MKC has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than MKC. Therefore, SP500 must receive a lower allocation than MKC in your portfolio. SP500 index usually has shorter drawdown period than MKC.

On a general note (since you are interested in MKC), AYTU has performed really well and deserves to be closely tracked for investment opportunities.

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