The consumer-defensive industry sells relatively low-priced products such as food, beverages, and personal hygiene products that consumers use in daily life. The demand for these products does not change with economic variability because people would not stop purchasing food and beverages despite the recession and slow economic growth. That’s why the consumer-defensive industry has outperformed the S&P 500 as a whole this year to date. Another reason to more »
Diamond Foods (NASDAQ: DMND) has been a tough stock to own over the past few years, and has likely left a sour taste in a number of investors' mouths. However, I'm a big fan of under-loved stocks. There are only seven Wall Street analysts following the stock, all with a "hold" rating. And the stock is down nearly 80% from its 2011 all time high of over $90:
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Investors have been feasting on food stocks recently, and this has others wondering if these companies still have room to grow. Food stocks are up about 30% so far this year, and that beats the S&P 500 by about 10 percentage points. Let's take a look at some of the most popular names so far this year and see if they have what it takes to continue soaring more »
The positive trend of achieving quick growth through acquisitions has become the norm in many industries and the packaged food industry is one of them. Mergers and acquisition is a costly but a speedy way to achieve growth and an enhanced product range. Companies usually undertake acquisitions that are complementary to their existing business to penetrate deeper into the market rather than diversify into new businesses. A similar approach was more »
The Consumer Defensive sector offers plenty of opportunities for dividend-seeking investors. Characterized by low volatility in its earnings and quite predictable growth paths, this is a choice for the risk-averse. The packaged foods industry, in particular, is one of the most predictable, while at the same time committed with sustainable growth and dividend payouts. Within this segment, I will look into three behemoths: General Mills (NYSE: GIS), Kraft (NASDAQ: KRFTmore »)
In the recession of recent days, the packaged food industry plans to minimize the economic loss through restructuring and cost saving measures. As of now, the economy is coming out of recession; companies in the packaged food industry are likely to grow their business by acquisitions, innovations, and emerging markets at a global level.
Many other factors are involved in fueling the growth for this industry. This industry is predicted more »
Everyone eats food, but not all foods make profits. Here are three economic moats from the packaged foods industry that promise to make further profits and reward loyal shareholders. In this occasion I have chosen two European and an American company: Nestle (NASDAQOTH: NSRGY), Unilever (NYSE: UL), and Kellogg (NYSE: K).
Best portfolio and world-leader
The world’s largest company by revenue, Nestle, is a multinational based in Switzerland. The more »
When you think of chocolate, which company first comes in mind? For me it was always Hershey (NYSE: HSY). The company’s good branding and dominance in the U.S chocolate market aren’t the only things working for it. Shares of Hershey rallied in recent months. Moreover, the latest positive rating the company got from leading analysts may keep fueling this rally, unless its upcoming quarterly financial reports don more »
Last Month, General Mills (NYSE: GIS), the world's 9th-largest producer and marketer of packaged food and the 5th-largest in the United States, announced impressive FY13 results with 7% growth in the top line and 19% growth in its bottom line. As a result, the stock has seen some positive momentum and has traded up 7% over the last month.
General Mills is known for breakthroughs in food technology and more »
Kellogg (NYSE: K) is an impressive, brand-centric company. So let's go over some details and determine whether or not it's likely to enjoy future success. We'll also determine if Kellogg is likely to be a better investment option than its peers going forward.
An easy to understand situation
Kellogg’s biggest challenge has been cost inflation. From 2011 to early 2013, commodity costs have increased, which impeded more »
Billionaire Mario Gabelli of GAMCO Investors appeared on CNBC on July 9 to discuss a variety of topics, including three stocks which he thought might be potential takeover targets. Acquisitions of public companies occur at significant premiums to the market price, allowing investors to earn high profits if they guess right, but we don’t like relying entirely on this kind of speculation and would advise to see if a more »
Kraft Food Group (NASDAQ: KRFT) is one of the best companies operating in the packaged food industry. The industry is very price competitive. It is tough for companies operating in this industry to achieve both top and bottom line performance. However, this industry has several advantages over the economic situation, which is a strong pro for companies operating in this industry.
In the case of Kraft, it has shown amazing more »
Investing in dividend stocks is one of the best ways to build wealth over long periods of time. Businesses with the best track records of paying dividends for decades on end usually sell products that consumers buy regardless of the prevailing economic climate.
That’s why, despite what you might instinctively feel, the major cereal companies in the United States have long track records of handsomely rewarding their shareholders. Consumers more »
Breakfast cereal has been around since the 1890s. It's an everyday staple for people all around the globe. While investors are out searching for the next Netflix, more prudent investors are looking for the next company that will be around in the next 100 years. Technology comes and goes, but breakfast cereal is here to stay.
The first breakfast cereal
Market capitalization (in $ billion)
These world leaders are crunching up the competition through acquisitions, improvements in major segments and growth in various regions. Thanks to the convenience of packaged food products, they are more »
Shares of ConAgra Foods (NYSE: CAG) have advanced more than 35% in the past year. The company made a big splash during this span with the Ralcorp acquisition and will now be the largest private-label food manufacturer in the United States. The run-up in shares should be encouraging to potential investors as the decade-long slump could give way to several years of out-performance and a re-rating in the shares. The more »
Kellogg (NYSE: K) has struggled over the last couple of years due to inflating costs, supply chain difficulties, poor product innovation, and increasing competition. All of this has taken its toll in the form of 1-2% drops in sales for both 2009 and 2010. Fortunately, Kellogg's management has admitted their shortfalls and now has plans to correct the course of the company.
While Kellogg has taken a bit of more »
I have returned from my first big grocery shopping trip since Kroger (NYSE: KR) stopped doubling manufacturer’s coupons.
It wasn’t pretty.
As an extreme couponer, losing the savings advantages of double coupons is a major hit to my grocery budget. Before the recent coupon change, I expected to save about 75% off my groceries. I still use coupons, but without the benefit of doubling, I am spending just more »
As major cereal brands announced good news in recent earnings reports, it was hard not to notice the cautious optimism in each company's words. Rising food costs had General Mills (NYSE: GIS) warning investors that its future quarter may not be as fruitful, while competitor Kellogg (NYSE: K) showed results that already reflected the profit dip.
For General Mills, the rising cost of grain and other ingredients more »
While many investors pursue the latest tech fad or the latest IPO, the supplier of your morning cereal, fruit bars, and morning sausage patties is also a great investment. With breakfast items a vital part of a morning routine, these companies are not only a great investment for your diet, but also for your wallet.
Your Lucky Charms
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