• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Nomad Foods Could Roam to Higher Ground

The charts indicate that buyers of the packaged foods company have been more aggressive of late.
By BRUCE KAMICH
Mar 01, 2019 | 09:23 AM EST
Stocks quotes in this article: NOMD

In his second "Executive Decision" segment during his popular "Mad Money "program Thursday on CNBC, Jim Cramer spoke with Stefan Descheemaeker, CEO of Nomad Foods Ltd. (NOMD) . Nomad is a European packaged foods maker and its shares soared 6.6% Thursday after reporting fourth-quarter results.

Descheemaeker said Nomad continues to invest in quality and in its stable of brands, which has given the company pricing power to help fend off rising commodity costs. Nearly 40% of Nomady's business now stems from frozen fish products, with another 20% from frozen vegetables, including Birds Eye, a brand the company purchased.

When asked about changing consumer tastes, Descheemaeker said millennials want health and wellness as well as convenience and affordability, all of which are aligned with frozen foods. He said Nomad is seeing the same trends in the U.S. and Europe.

Fresh or frozen, let's check out the charts and indicators to see what they are suggesting about NOMD.

In this daily bar chart of NOMD, below, we can see that prices made a November-December selloff but have retraced most of that decline. NOMD gapped higher Thursday to close above the rising 200-day moving average line. The shorter 50-day moving average line is below the market and bottoming now.

The level of trading volume increased into the end of February, telling us that participation had increased and broadened out, and the daily On-Balance-Volume (OBV) line has been working higher since late December. A rising OBV line is bullish and tells us that buyers of NOMD have been more aggressive. The daily Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal in early January and crossed above the zero line in the beginning of February for an outright go long signal.

In this weekly bar chart of NOMD, below, we can see that the longer-term trend of prices has been up. NOMD is back above the rising 40-week moving average line. The weekly OBV line has been positive since April 2018 but could use a new high to give me confidence that prices will move up to new highs. The weekly MACD oscillator has been above the zero line for the past two years and is turning up to a fresh outright go long signal.

In this first Point and Figure chart of NOMD, below, we can see a nearby upside price target of $21.27 projected. Not quite an upside breakout.

In this second Point and Figure chart of NOMD, below, we shifted to weekly data. This chart shows a possible longer-term price target of $32.

Bottom line strategy: NOMD may or may not dip to fill some or all of its gap created on Thursday. Aggressive traders who want to go long NOMD could take a starter position at current levels and fill out their position on strength. Risk a close below $18.50. My price targets are $21.50, $25 and $32 longer term.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.


Employees of TheStreet are restricted from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Consumer | Food & Staples Retail | Consumer Staples | Mad Money | Executive Interview | Real Money

More from Stocks

How to Trade MongoDB After Its Huge Upside Move

Bruce Kamich
Jun 5, 2023 1:45 PM EDT

Let's check out the charts and indicators for clues.

This Value Portfolio of Lovable Losers Is Down But Not Out

Jonathan Heller
Jun 5, 2023 1:10 PM EDT

With about six months to go, anything can happen for the 2023 Tax Loss Selling Recovery Portfolio.

Friday's Cheer Turns to Monday Drear

James "Rev Shark" DePorre
Jun 5, 2023 11:35 AM EDT

Even the bulls will likely agree that this market needs better participation and breadth.

As Palo Alto Networks Joins the S&P 500, Here's How to Play the Stock

Stephen Guilfoyle
Jun 5, 2023 11:24 AM EDT

This 'best-in-class' cybersecurity name was already hot, before the news.

I'm Placing Bets on a Couple of Giants to Lose Ground in the Coming Months

Bret Jensen
Jun 5, 2023 10:10 AM EDT

This pair of household names easily could pull back based on the economic challenges ahead.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • 12:07 PM EDT STEPHEN GUILFOYLE

    Selling Some of This Surging AI-Related Stock

    This isn't the only name in the Stocks Under $10 p...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login