The Zacks Analyst Blog Highlights: General Mills, Annie's, Hain Celestial Group, WhiteWave Foods and Boulder Brands
CHICAGO, Sept. 12, 2014 /PRNewswire/ -- 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. (NYSE:GIS-Free Report), Annie's Inc. (NYSE:BNNY-Free Report), Hain Celestial Group, Inc. (Nasdaq:HAIN-Free Report), WhiteWave Foods Company (NYSE:WWAV-Free Report) and Boulder Brands, Inc. (Nasdaq:BDBD-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
3 Natural & Organic Food Stocks for Your Health & Wealth
After the publishing industry, dollar stores and technology sector, it is now time for the natural and organic food companies to grab your attention. Apart from an overall increasing appetite for organic products, what is bringing these companies to the fore is the industry's recent consolidation news of General Mills Inc. (NYSE:GIS-Free Report) acquiring Annie's Inc. (NYSE:BNNY-Free Report) for about $820 million (read: Annie's Soars on $46 per Share Offer from General Mills).
The natural and organic food companies may now be on the radar of investors, who are more interested in the next takeover target or buyout offer to cash in on.
The food industry is experiencing changes in consumer preference toward products with less artificial sweeteners, sodium and saturated fat. Consumers now prefer a nutritional diet and are ready to shell out extra for it. That is why the organic food industry, which was at its nascent stage a decade ago, now represents over 4% of $760 billion annual food sales in the U.S., as indicated by Organic Trade Association ("OTA").
According to the survey conducted by OTA, sales of organic products in the U.S. surged at its fastest rate in five years at 11.5%, to $35.1 billion in 2013 from $31.5 billion in 2012. Organic products are expected to generate approximately $42 billion in sales this year. Sales in the organic food market have been growing at an average rate of 10% annually since 2010.
But with growing demand for organic food and increasing accessibility to these products, competition to gain market share has heightened. Here is your opportunity to be invested in these companies that might fetch a huge premium in any event of takeover.
3 Prominent Picks
We suggest investing in The Hain Celestial Group, Inc. (Nasdaq:HAIN-Free Report), a leader in natural food and personal care product categories. The stock holds a Zacks Rank #2 (Buy) and has amassed a return of roughly 28.3% over the past year. Though the stock looks pricey with a forward P/E (price-to-earnings) multiple of 26.67x, it should not disappoint investors given the company's long-term expected earnings growth of 14.1%. This Lake Success, NY-based company delivered an average positive earnings surprise of 1.1% over the trailing four quarters.
The WhiteWave Foods Company (NYSE:WWAV-Free Report), a packaged food and beverage company in North America and Europe, is another stock to bet on. This Zacks Rank #2 stock has amassed a return of 90.2% in the past year and has a long-term earnings growth rate of 23.1%. Shares of this Denver, CO-based company trades at a forward P/E of 36.65x, a sharp premium to the industry average but attractive from an earnings growth perspective. The company delivered an average positive earnings surprise of 7.5% over the trailing four quarters.
Another stock that investors may look forward to is Boulder Brands, Inc. (Nasdaq:BDBD-Free Report), provider of health and wellness food solutions in the U.S. and Canada that has gained 12.2% following the General Mills deal to buy Annie's. Also a Zacks Rank #2 stock, this trades at a forward P/E of 37.26x, a premium to the industry average, and has a long-term earnings growth rate of 20% that makes it attractive.
We believe that above natural & organic food stocks with favorable Zacks Rank stands well on investors' platform of both health and wealth.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on GIS - FREE
Get the full Report on BNNY - FREE
Get the full Report on HAIN - FREE
Get the full Report on WWAV - FREE
Get the full Report on BDBD - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
SOURCE Zacks Investment Research, Inc.
Share this article