One of the best-performing staples stocks this month could get even hotter

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One of the best-performing staples stocks this month could get even hotter $KO $XLP (via TradingNation)

It's about to get even better for one of the top performers, said Matt Maley, equity strategist at Miller Tabak" on Tuesday. "Its earnings were actually in line in February, but their guidance was lower than expected, and the stock got crushed, but it held that $44.50 level. In fact, it bounced very strongly off of it, and rallied strongly up through its old highs of 2018, and beat those highs by a considerable margin with a series of higher lows and higher highs.

"This is a stock that, I would also mention pays a 3% dividend, so gives you a little protection if the stock market becomes more volatile again, but also provides some more upside, but again you have to pick your spots a little bit more nowadays in this group," Maley said."If you look at the broad group, it still looks quite good," Maley said. "We had a nice double bottom late last year with the December low.

"Late in the spring, it broke above its old 2018 all-time highs by a considerable margin. It did see another dip during the summer, but it held that old high, so that new support held very nicely, and it has bounced again," Maley said. "We're well over two times exposure to the consumer staples sector. ... In the big-picture perspective, the global macro backdrop, we still continue to believe this is an ideal sector to be overweight," said Morganlander.

 

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