SHANGHAI, Oct. 16, 2024 — According to a Bank of America report, Yum China Holdings (YUMC, Financial) could potentially be one of the more watched consumer sector stocks that could experience choppiness ahead of the U.S. election. Analysts are of the opinion that geopolitical tensions from the election results could lead to short-term market reactions, including fund outflows and adjustments to China's stimulus policies.
Moreover, Bank of America also underscored Yum China as one of the top consumer stock for U.S. long-term investors, with analyst Chen Luo noting any election-driven pullback could potentially be a loading up opportunity. Yum China is set to report its Q3 earnings in the coming weeks, with estimates pointing to $3.02 billion in sales, a 2% decline in same-store sales, and EPS of 65 cents.
Also, the company has marched ahead past earnings expectations in the last three quarters but has revenue targets in four of the last five. Also, Yum China stock is up 25.1% over the past six weeks, driven by China's stimulus measures. Also, the stock currently trades above its 100-day and 200-day moving averages while attracting a Strong Buy consensus from analysts.
