Commodity inflation is weighing on many packaged-food companies these days. Ingredients cost more, so margins are being squeezed. But there are a number of big-name food stocks that continue to gobble up competitors and grow their sales. They’re thriving despite challenging conditions.
I watch more than 5,000 publicly traded companies with my tool, ranking companies by a number of fundamental and quantitative measures. This week: nine food-product stocks to buy.
Here they are, in alphabetical order. Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”
ConAgra Foods Inc. (NYSE:) owns the brands Banquet, Chef Boyardee, David Seeds, Egg Beaters, Healthy Choice and Hebrew National, among others. CAG has gained 12% in the last year. ConAgra stock gets a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and a “B” grade for return on equity in my Portfolio Grader tool. .
General Mills Inc. (NYSE:) is a major international manufacturer and marketer of consumer foods. In the last 12 months, GIS is up 4%. GIS stock gets a “B” grade for sales growth and an “A” grade for return on equity in my Portfolio Grader tool..
H.J. Heinz Co. (NYSE:) is a food company best known for producing ketchup, mustard, sauces and other condiments. HNZ is up 7% in the last year, compared to a 5% gain for the Dow Jones in the same time. HNZ gets a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity in my Portfolio Grader tool. .
Hershey Co. (NYSE:) is one of the most well-known producers of chocolate and other confectionery goods in the U.S. Hershey is up 13% since last March. HSY gets a “B” grade for operating margin growth, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity in my Portfolio Grader tool. .
Hormel Foods Corp. (NYSE:) produces a range of meat and food products. Hormel has posted a modest gain of 3% in the last year. HRL gets a “B” grade for operating margin growth, a “B” grade for cash flow and a “B” grade for return on equity in my Portfolio Grader tool. .
Kraft Foods Inc. (NYSE:) deals with packaged-food products, including biscuits, confectionery, beverages, cheese and convenient meals. In the last year, Kraft stock gets a “B” grade for operating margin growth, a “B” grade for earnings growth and a “B” grade for return on equity in my Portfolio Grader tool. .
J.M. Smucker Co. (NYSE:) counts coffee, peanut butter, shortening and oils, fruit spreads, canned milk and baking mixes as its biggest products. SJM stock has gained 7% since this time last March. Smucker stock gets a “B” grade for sales growth in my Portfolio Grader tool. .
Sara Lee Corp. (NYSE:) is involved with meats, bakery, beverage and household products, but is best known for desserts. In the last year, SLE has posted an impressive gain of 23%. SLE gets a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity in my Portfolio Grader tool. .
Unilever N.V. (NYSE:) makes consumer goods that are sold in more than 180 countries. UN has gained 7% in the last 12 months. Unilever stock gets a quantitative grade of “B” in my Portfolio Grader tool. .
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