McCormick & Co. Stock Ticks Up ahead of Earnings Report

The MKC stock has climbed by 1.19% since Friday, as the company’s earnings report is due out Tuesday.

Investors expect a mildly positive report for company revenue and sales, and this particular stock stands out as the biggest company to release its earnings report for this week.

MKC’s stock has been climbing for much of the last week, though that growth has not been steady. McCormick & Co. produces seasonings and spices that are a staple of most grocery retailers, and the company has been in business since 1889.

Several investors have increased their position in McCormick & Co. stock recently, perhaps in anticipation of the earnings report. Wellington Management Group increased its shares in the stock by 64%. Theirs has been one of the largest changes in position, but it pales in comparison to the 5,770,000 shares of stock purchased by Moneta Group Investment Advisors in the 4th quarter.

Is MKC a Good Investment Right Now?

Even though major investors have banked on the MKC stock, it might not be the smartest choice for smaller investors with more to lose. The company is expected to post a decrease of 1 cent per share, down from 59 cents per share last year.

What we have seen lately from company earnings reports is that if the report is only mildly positive and the outlook is poor, then the stock plummets quickly. McCormick & Co., if it posts a loss for tomorrow, will likely not stay down for long, but it could hurt those who invest in the stock now ahead of the report.

The company is expected to post a quarterly earning of $1.56 billion. Last quarter, the earnings were slightly below expectations. The company is still performing strongly but not seeing substantial growth, which will hurt it as an investment opportunity for traders. We advise caution on this stock because while not volatile, it has little chance to break out and produce big gains.