Miscellaneous Food Industry Outlook: Costs Raise Concerns

Price-to-Earnings Ratio (Past 5 Years)

Bottom Line

While there is no denying that companies in the Food-Miscellaneous industry are reeling under escalating commodity and freight expenses, endeavors to boost profitability are helping many of them to stay afloat.

That said, we are presenting three stocks, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

McCormick & Company, Inc. (MKC), a renowned name in spices and seasonings, has gained as much as 38.9% in a year. The company has an estimated long-term earnings growth rate of 9%. It has outperformed the Zacks Consensus Estimate by an average of 5.2% in the trailing four quarters. Markedly, McCormick’s consensus EPS estimate for the current fiscal year has been stable over the last 30 days.

Price and Consensus: MKC

Campbell Soup Company (CPB) has an estimated long-term earnings growth rate of 5.5% and has an average positive earnings surprise of 13.6% for the last four quarters. The company’s consensus EPS estimate for the current fiscal year has been stable over the last 30 days.

Price and Consensus: CPB

Investors can also count on 

Lamb Weston Holdings, Inc. (LW), which boasts stellar bottom-line surprise history. Encouragingly, this frozen potato products supplier’s shares have rallied 21.5% in a year. The company carries a long-term EPS growth rate of 11.8%. Moreover, its consensus EPS estimate for the current fiscal year has improved over the last 30 days.

Price and Consensus: LW

 

 

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