WhiteWave Foods Co (NYSE:WWAV) with its market capitalization of $7.75B has my attention today. The company is a consumer packaged food and beverage company. The Company manufactures, markets, distributes, and sells plant-based foods and beverages, coffee creamers and beverages, and dairy products throughout North America and Europe.
WhiteWave has shown an interesting bullish bias, which piqued my interest in the stock over the last couple of days. The stock soared to a new 52-Week high of $45.51 yesterday and the bullish tendencies of the stock provides options traders with a chance to make profits. The shares of WhiteWave have been rising consistently in the last couple of weeks as its stock trades above its 50 and 200-day moving averages.
Technical Indicators Support the Bullish Bias
The stock has gained 9.01% in the last one month as it records 8 new highs within the same period. The stock has an RSI of 68.89, which supports the bullish bias in line with the technical support at $43.29. Analysts are projecting that WhiteWave will deliver impressive results in its top and bottom-lines in the next couple of quarters.
For instance, it is expected that the company’s revenue will increase by 10.20% this year and that it will grow by 8% in 2016. The projected earnings for WhiteWave also looks attractive at estimates project an increase 11% this year. In addition, the street forecasting an 18% growth in earnings next year and a compound annual growth rate of 20.76% through the next five years.
The chart above shows how the shares of WhiteWave have traded within the last five years. The stock has had two rectangle patterns culminating in the current breakout. In the first rectangle, the shares of WhiteWave Foods were trading with a $29 support level and a $33 resistance point. In the second rectangle, the stock sported a $32.5 support and a $38 resistance point. The stock has rose impressively to a new trading level as shown by the blue arrow and we can expect the stock to set a new trading level in the next couple of weeks.
Healthy For Your Portfolio
WhiteWave stock options will be a healthy addition to your portfolio as the stock continues to rise on the new American craving for convenient but healthy food. Americans are more health conscious and they are eating more organic and healthy produce and less of packaged junk food. You’ll observe that the patronage for healthy restaurant such as Chipotle is on the rise while the patronage for fast food such as McDonald is on the decline.
This change in consumer trends is not lost on WhiteWave as the company announced its acquisition of Earthbound Farms for $600M in January. WhiteWave has benefited from the new consumerism trend as it reported a 34% year-over-year increase in net sales and an 11% year-over-year increase in organic sales. The company is also optimistic about its long-term prospects as it guided for adjusted diluted earnings per share of $1.08 to $1.12 for fiscal 2015.
How to Trade WWAV Options
My optimism on WhiteWave Foods is contagious as the company looks forward to reporting another season of outperformance when its Q1 2015 results are released in May. The bullish play is smart on WhiteWave Foods and I recommend buying WWAV call options. I am especially interested in the WWAV Jul 2015 45.000 call (WWAV150717C00045000)at an asking price of $2.85.
— Daily Option Alerts