While some investors might want to look for the next hot sector or up-and-coming industry to dive into, sometimes investing in more everyday industries can prove just as beneficial and profitable.
With that said, we will look at three companies that hold unique positions in an industry close to many peoples’ hearts: food.
On top of their standing as big names in their respective food industry segments, these three firms also hold strong Zacks Ranks. Let’s take a look at some of their current fundamentals to see if investors might want to grab these food stocks from the grocery aisle.
McCormick & Company (MKC – Free Report)
This maker of ubiquitous seasonings and spices is currently a Zacks Rank #1 (Strong Buy) and scored an “A” grade for Momentum in our Style Scores system.
McCormick’s 6.10% year-to-date price change is less than the S&P 500, but its 6.62% 12-week price change shows that it could be starting to heat up right now.
On top of this, McCormick is an interesting growth pick.
McCormick’s current cash flow growth of 6.61% is above its industry’s average, and along with its 0.95 current ratio and 26% return on equity—which both also top the industry average—this helps show that the spice maker is growing.
And based on our current Zacks Consensus Estimates, McCormick’s sales are expected to jump 20.31% this quarter to hit $1.5 billion. For the full-year, the company’s revenue is projected to grow 9.25% to touch an upward estimate of $4.84 billion.
McCormick’s quarterly earnings are set to pop 19.49% based on our current estimates, while the company’s full-year EPS is expected to gain 11.59% to reach $4.24 per share. This marks strong growth for such an established company in a niche seasoning sector that hasn’t changed much in years.
Shares of McCormick sit roughly 7% below their 52-week high, which means the flavor making power has room to climb, and the company has missed earnings expectations just twice since the start of 2013.
