Natural and health products have become important to today’s consumer. Trends confirm this, and we’ve seen a noticeable shift over the years as individuals express a desire to live a more healthy and fit lifestyle.
They’re primarily concerned about safety, even if it means having to pay a premium for access to higher-quality, organic-based foods that were grown without the use of any poisons, heavy metals, carcinogens or other harmful chemicals.
But, at the end of the day, a growing global population must eat to survive — even if it means settling for the next-best option. And, with a constant and predictable level of demand, companies stand eager and ready to meet the challenge for their shareholders.
Using the Technical Event Screener feature of the Profit Scanner powered by Recognia, we’ll review three of the most attractive consumer goods stocks that compete in the space with the intention of establishing positions at a deep discount.
Let’s take a look at the first trade.
Consumer Goods Stocks to Buy: Lifeway Foods, Inc. (LWAY)
Lifeway Foods, Inc. (NASDAQ:LWAY) manufactures probiotic, cultured and functional dairy health food items, selling fermented dairy products to consumers through a network of distributors and retailers in the United States. Internationally, Lifeway sells its products to retailers in Mexico, Costa Rica, Dubai, Hong Kong, China and the Caribbean.
As you can see in the chart above, Profit Scanner has confirmed a bullish “Continuation Wedge” pattern that represents a temporary interruption to an uptrend and takes the shape of two converging trendlines, both of which are slanted downward against the trend.
During this time, the bears attempt to win over the bulls — but, in the end, the bulls triumph, as the break above the upper trendline signals a continuation of the prior uptrend.
According to Profit Scanner, LWAY has a long-term conservative price target of $19 per share, with support at $9.02 below. With Lifeway stock currently going for just $10.44 at the time of this writing, investors could pocket gains up to 82% with minimal downside risk.
Consumer Goods Stocks to Buy: Amira Nature Foods Ltd (ANFI)
Amira Nature Foods Ltd (NYSE:ANFI) is a Dubai-based company that trades on the New York Stock Exchange, selling rice that it purchases from small farmers in India who grow the important agricultural commodity at the base of the Himalayan mountain range. After the rice has been processed, it is then distributed, marketed and sold at retail and wholesale chains across the globe.
More importantly, let’s find out what’s been going on with the stock.
In the chart above, price seems to have reached a bottom, showing a sign of reversal as it has broken upward after a period of uncertainty or consolidation. The Bottom Triangle pattern highlighted in red shows two converging trendlines as prices reach lower highs and higher lows.
Volume diminishes as the price swings back and forth between an increasingly narrow range, reflecting uncertainty in the market direction. Then, before the triangle reaches its apex, price breaks above the upper trendline with a noticeable increase in volume, confirming this bullish pattern as a reversal of the prior downtrend.
In an advanced screener search, Profit Scanner tells us that ANFI has an intermediate-term conservative price target of $8.90 per share, with support at $7.26 below. With Amira stock currently trading at just $7.66, investors could see 16.18% in potential profit.
Consumer Goods Stocks to Buy: Omega Protein Corporation (OME)
Omega Protein Corporation (NYSE:OME), a company founded in 1913 and headquartered in Houston, Texas, operates a fishing fleet and produces food ingredients, dietary supplements and animal feed. These products include fish oil, fish meal and proteins.
In other words, they deliver quality ingredients that improve nutritional integrity of food so that their consumers and their families live healthier lives.
In the chart above, you can see that the price of OME has broken upward out of a consolidation period, suggesting a continuation of the prior uptrend. A bullish Symmetrical Continuation Triangle formation shows two converging trendlines as prices reach lower highs and higher lows.
Similar to the pattern we saw with ANFI, volume shrinks as price swings back and forth between an increasingly narrow range, reflecting indecision with regards to market direction. Before the triangle reaches its apex, price breaks out above the upper trendline, confirming the pattern as a continuation of the prior uptrend.
OME has an intermediate-term conservative price target of $26.75 per share, with support at $18.22 below. Omega’s stock is currently trading at $19.61. Based on the target level above, investors could see returns climb as high as 36.40%.
Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.