Updating our Aggressive stocks: Yum China Holdings, Teradata & Diebold Nixdorfs

Article Excerpt

YUM CHINA HOLDINGS INC. $60 (www.yumchina.com) is a buy. The company is China’s largest fast-food operator with over 13,000 outlets in 1,800 cities, mainly under the KFC and Pizza Hut banners. For all of 2023, Yum China expects to open between 1,100 and 1,300 new stores (net of closures). Despite slower-than-expected economic growth in China following the end of COVID-19 restrictions, the company should continue to benefit from strong consumer demand for online ordering and home delivery service. Yum China is a buy. TERADATA CORP. $55 (www.teradata.com) is a hold. The company makes computers and software to capture and store large amounts of data for individual businesses—its clients. Strong demand for its cloud-computing services has helped lift the stock by over 50% in the past year. It now trades at 27.9 times the projected 2023 earnings of $1.97 a share. That high multiple increases the risk of a sharp pullback if its revenue growth slows. Teradata is a hold. DIEBOLD NIXDORF INC. $0.07 (www.dieboldnixdorf.com) is a sell. The world’s biggest maker of automated…