Defensive Leader Kraft Heinz Is Experiencing Bullish Capital Rotation

Kraft Heinz is rated Strong Buy, offering a compelling risk/reward setup with high dividend yield and deep undervaluation. KHC’s technical momentum has turned positive since June, with a recent golden cross formation and technical supply/demand indicators supporting upside potential. The 6.4% dividend and 13.3% free cash flow yield at $25/share provide attractive defensive income generation. Insider buying, the potential for a takeover/merger, and a defensive capital inflow future further bolster the bullish thesis.

I have written both bearish and bullish takes on The Kraft Heinz Company ( KHC ) over the years. When the two namesake food giants merged in 2015, the debt overhang was clearly too big in my opinion to generate meaningful gains