Big Money Fills Up on Simply Good Foods

And the specialty foods maker could rise even more due to solid financial performance and upcoming share repurchases. But another likely reason is Big Money lifting the stock.

Simply Good Foods Attracts Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Simply Good Foods has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals SMPL has made the last year.

The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 11 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

• 1-month outperformance vs. Consumer Staples Select Sector SPDR ETF (+8.7% vs. XLP)

Outperformance is important for leading stocks.

Simply Good Foods Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Simply Good Foods has been growing sales at double-digit rates and is projected to grow earnings similarly. Take a look:

• 3-year sales growth rate (+33.5%)
• 2-year vs. 1-year EPS growth estimate (+13.4%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, SMPL has been a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

SMPL has a lot of qualities that are attracting Big Money. It’s made this list three times since it began trading in 2017, with its first appearance on 01/05/2021…and gaining 38.8% since. Big Money may have a gem on its hands. The blue bars below show the times that Simply Good Foods was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the consumer staples sector according to the MAPsignals process. I wouldn’t be surprised if SMPL makes additional appearances in the years to come. Let’s tie this all together.

Simply Good Foods Price Prediction

The Simply Good Foods rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in SMPL at the time of publication.

Learn more about the MAPsignals process here.

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