Research on HJ Heinz and Kraft Foods: Food Industry Posts Good Growth
13 Feb, 2013, 08:00 ET
LONDON, February 13, 2013 /PRNewswire/ --
Like every other industry, even the staple food industry bore the brunt of a dire economic environment. However, with the improvement in overall economy, these stocks are making a major comeback. Major packaged food company HJ Heinz Company (NYSE: HNZ) is on a bull's run and created new 52-week highs. The sector is also seeing reorganization due to mergers and spin offs. Kraft Foods spun itself off into Kraft Foods Group Inc. (NASDAQ: KRFT) last year. The new company is mainly invested in North American markets. The move will allow Kraft Foods Group to focus its efforts to its core brands. StockCall has posted free technical research reports on HJ Heinz and Kraft Foods Group, and these can be accessed by signing up at http://www.stockcall.com/analysis
HJ Heinz on 52-Week High
HJ Heinz Company is in bullish mode and the stock has been hitting new 52-week highs. The company holds a leadership position in the U.S. condiment market and now is expanding into emerging markets. It currently derives 20 percent of its revenue from emerging markets. This food giant made major advancement in the Chinese market as it recently announced an early earn-out payment for its Foodstar business in China. HJ Heinz Company technical report can be accessed for free by signing up at http://www.StockCall.com/HNZ021313.pdf
Among the various challenges faced by the company is its ability to control input costs. With the rise in agriculture product prices, the company faces the challenge of protecting its margin. Its current operating margin stands at 18 percent. It is also expected to feel the pressure of last year's drought, which led to shortage and consequent high prices of produce. However, despite this concern, HJ Heinz is set to grow organically as well as through acquisitions. The company is looking to make strategic acquisitions to fuel its growth in the domestic and overseas market.
HJ Heinz stock gives a 3.38 percent dividend yield, which is slightly better than most of its peers. However, it carries low debt with Debt-Equity ratio of 0.21. With its cost-cutting measures, the company may get past the food inflation and deliver good results. Weakness in developed economies will also be neutralized by the company's foray into growing markets.
Kraft Foods Group to Report Financial Updates
Kraft Foods Group is set to provide its financial updates this Friday. The company would not be reporting its full earnings. The company is expected to grow aggressively as it emphasized its reliance on advertising and promotion of its core brands. Kraft Foods Group also plans to launch new product ranges to retain its market standing. It is also expected to focus more on growing its margins instead of compromising on them to grow its market. Download the free report on Kraft Foods Group Inc. upon registration at http://www.StockCall.com/KRFT021313.pdf
Kraft Foods Group faces its biggest competitive threats from private label companies and major brand companies as they impact company's growth prospects. However, the company has been adopting multipronged approach to counteract the threats. Kraft Foods Group is not only aggressively developing its product portfolio but it is also aligning its management accordingly. Lately, the company has made new appointments for its key posts. Kraft Foods Group offers excellent dividend yield of over 4 percent. The stock also has a good scope of providing capital appreciation. Kraft Foods Group is an ideal candidate for an income portfolio.
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