For Immediate Release
Chicago, IL – September 11, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the General Mills, Inc. (GIS), Hershey Company (HSY), Chipotle Mexican Grill, Inc. (CMG), WhiteWave Foods Company (WWAV) and Campbell Soup Company (CPB).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Eat Well, Think Well & Earn Well with These 3 Stocks
Eat fresh, natural and minimally processed food imbued with nature’s best ingredients. That is the mantra right now. Consumers seem to have turned their backs on frozen ready-made fare, demanding in its place food rich in protein, gluten-free choices and simpler ingredients.
And the food and restaurant sector is more than willing to comply. They’re dishing out health and wellness and “good-for-you” products in response to changing consumer preferences and increasing public and governmental concerns regarding obesity and other co-morbidities.
Companies in the North American food and restaurant sector have realized the importance of growth opportunities attached to this sub-sector. Ready to cash in on this health wave, these companies are putting in their best and growing their profits too.
What Are the Food Companies Doing?
Food companies are devising ways to meet the evolving demand for products with improved nutrition or simpler ingredients. They’re eliminating/reducing unwanted sugar, cholesterol, trans and saturated fat and sodium content of existing food products.
Companies like General Mills, Inc. (GIS) committed to remove artificial flavors and colors from their cereals, while others like The Hershey Company (HSY) plans to use simpler ingredients like locally produced milk, roasted California almonds, cocoa beans and sugar in its chocolates.
Healthy Stock Preferences
With every food/beverage/restaurant company doing something or the other to capitalize on the growing health and wellness wave, we highlight a few food/restaurant stocks for a healthy portfolio.
Chipotle Mexican Grill, Inc. (CMG)
Chipotle — one of the most recognized fast casual Mexican restaurant chains in the U.S. —is known for its excellent food, prepared from fresh ingredients and sustainably grown and naturally raised products such as pork, chicken and beef. In 2013, Chipotle became the first restaurant to use genetically modified organism (GMO)-free ingredients in its food items. At present, all the food that Chipotle serves is made from non-GMO ingredients.
This Zacks Rank #3 (Hold) company has been posting positive comps over the past few quarters. The momentum is not expected to dissipate in the near future while you savor their innovative launches, antibiotic-free meats and organic menu items. Increased media exposure will also be a catalyst.
The stock’s price has gone up 6% year to date and 31% in 2014. The company has delivered positive earnings surprises in the trailing five quarters.
The WhiteWave Foods Company (WWAV)
The WhiteWave Foods Company’s plant-based foods & beverage products enjoy strong demand backed by the natural/organic food revolution.
WhiteWave Foods has made a couple of acquisitions lately fortifying its presence in the in-demand high-growth food/beverage categories. This June, it acquired a plant-based nutrition products company, Vega, operating out of Vancouver, British Columbia. Last year, it had acquired So Delicious Dairy Free, a Eugene, OR-based manufacturer of dairy free products and beverages and Earthbound Farm, a leading organic greens and produce brand. These companies, ever since the purchase, have been a significant driver of WhiteWave Foods’ sales and profits.
A Zacks Rank #3 (Hold) stock, WhiteWave Foods recorded earnings per share growth of 36% last year thanks to acquisitions, innovation, increased scale, supply chain initiatives and pricing actions. Shares also surged 55% in 2014 and has gained 31% year to date. In fact, this company has delivered positive earnings surprises in six of the past seven quarters.
Campbell Soup Company (CPB)
Campbell Soup is making aggressive efforts to enhance its brand portfolio and accelerate future growth through acquisitions and joint ventures. The worldwide manufacturer of branded convenience food products highlighted at a recent investor meet its plans to increase focus on health and wellness. This Zacks Rank #2 (Buy) company plans to alter recipes of many of its soups, remove artificial colors and flavors from its products and offer more organic food items.
The stock’s price has gone up almost 13% year to date and 31% in 2014. The company has delivered positive earnings surprises in the past four quarters.
Others to Watch Out For
Apart from the above choices, we also have General Mills and Kellogg working hard to turn around their struggling sales by bringing in more natural and organic products to their portfolio.
For General Mills, the addition of Annie's last year put the company’s overall natural and organic portfolio at over $600 million in net sales. Management is trying to turn around its struggling U.S. Retail business through increased investments in cereal to foster growth, accelerate the performance of better-for-you snacking — both yogurt and snacks businesses — and drive double-digit growth in the natural and organic portfolio.
Kellogg has completely redesigned Special K in the domestic market as a healthy lifestyle brand in line with the change in consumer attitude from dieting to health and wellness.
Both these companies are expected to see a better 2015 than the last two years on the back of these efforts.
In Conclusion
Consumer spending on health and wellness products should increase manifold down the line. Better economic conditions and purchasing power will also foster the desire to live and eat well Consumers are unlikely to flinch from spending the extra buck if it helps them to attain their health and wellness goals. This can only mean higher profits for the food and restaurant sector.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today. Find out What is happening in the stock market today on zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GENL MILLS (GIS): Free Stock Analysis Report
HERSHEY CO/THE (HSY): Free Stock Analysis Report
CHIPOTLE MEXICN (CMG): Free Stock Analysis Report
WHITEWAVE FOODS (WWAV): Free Stock Analysis Report
CAMPBELL SOUP (CPB): Free Stock Analysis Report
To read this article on Zacks.com click here.