Diamonds and Dogs
Mac and cheese and ketchup are adding fuel to today's diamond. Kraft Heinz (KHC) is surging 3% to a new 52 week high following better than expected earnings. As one of the world's largest food companies, Kraft reported a nearly 38% increase in quarterly profits thanks to cost-cutting efforts, reduced expenses and a weaker dollar. As a stand-alone company, Kraft Heinz has performed well up 12% year to date.
Staying FIT is harder than being lazy. Fitbit (FIT) has revolutionized the athletic wear technology category, but unfortunately since there are no barriers to entry, competition has been fierce. The stock is down 17% not far from a 52 week low and all time low following earnings. The company actually reported better than expected earnings and sales, but the guidance was disappointing. The now expected second quarter earnings of 8 to 11 cents a share are lower than estimates of 26 cents per share due to increased spending. Since coming public last year, the stock is down over 50%. Let's hope they can turn things around.