The US food and beverage market is expected to record strong growth In the coming months. A change in consumer preferences and availability of various food products based on nutrient content, ease of manufacture and ready-to-eat characteristics are expected to drive the growth of the food products industry. Growing demand for organic foods and advances in packaging systems are expected to further fuel industry sales.
The World Health Organization and the Food and Agriculture Organization of the United Nations will be publish updated food safety strategies in 2022. This should further strengthen the position of food manufacturers. They will follow the guidelines on preservation and packaging techniques and guarantee their customers safe products.
Against this backdrop, we believe that shares of fundamentally healthy food companies General Mills, Inc. (GIS), the Kellogg Company (K), Ingredion Incorporated (INGR) and Flowers Foods, Inc. (FLO) might be great choices now. They have gained considerably over the past few months and should continue to rally.
General Mills, Inc. (GIS)
GIS is a Based in Minneapolis, MN manufacturer and distributor of branded consumer foods sold in retail stores. The Company operates through five segments: North America Retail; Convenience stores and food services; Europe and Australia; Asia and Latin America; and pet. GIS offers fruit and savory snacks, nutrition bars, ready-to-eat cereals, convenience meals and other food categories. The company operates 466 leased ice cream parlors and 392 franchised ice cream parlours.
GIS net sales increased 6.5% year-over-year to $5.02 billion for its fiscal second quarter, which ended November 28, 2021. operating result amounted to $800.1 million. And its net profit was $597.2 million. Additionally, the company’s EPS was $0.97 during this period.
Analysts expect GIS revenue for its fiscal year 2022 to be $18.82 billion, up 3.8% year-over-year. Additionally, its EPS is expected to increase by 4.2% in fiscal 2022. Its share price has increased by 24.4% over the past year. Moreover, it is currently trading at $68.9, near its 52-week high of $69.68, which it reached on December 17, 2021.
The strong fundamentals of GIS are reflected in its POWR Rankings. The stock has an overall B rating, which equates to a buy in our proprietary rating system. POWR ratings rate stocks on 118 separate factors, each with its own weighting.
Also, the stock has a B rating for stability and quality. We also rated the SIG for Momentum, Sentiment, Value and Growth. Click here to access all GIS notations. GIS is ranked No. 29 out of 84 stocks in the B rating Food manufacturers industry.
Kellogg Company (K)
K is a manufacturer and marketer of cereals and ready-to-eat foods, including crackers, savory snacks, toaster pastries, cereal bars, granola bars, frozen waffles, vegetarian foods and noodles. the Company based in Battle Creek, Michigan operates in North America; Europe; Latin America; and the Asia Middle East Africa segments. Kellogg’s, Cheez-It, Pringles, Austin, Parati and RXBAR are the brands under K.
This month, K launched Nutri-Grain Strawberry Squash Apple Carrot Soft Breakfast Bars and Nutri-Grain Chocolate Banana Bites. These are new flavors in Kellogg’s Nutri-Grain Breakfast. The company believes the new breakfast series should help parents find new ways to serve breakfast and snacks that their kids will love and feel good about.
During the third quarter, ended October 2, 2021, K’s net sales increased 5.6% year-over-year to $3.62 billion. The company’s operating profit rose 8.8% from its value a year ago to $447 million. Its net income was $305 million. Additionally, its EPS was $0.89 during the period.
K’s revenue is expected to grow 1.7% year-over-year to $14.37 billion in its 2022 fiscal year. The company has an impressive track record of earnings surprises; it has beaten consensus EPS estimates in three of the last four quarters. Additionally, its EPS is expected to increase 3.5% in its fiscal year 2021 and slightly in its fiscal year 2022. Additionally, the share price has gained 13% over the past year. Moreover, it is currently trading at $68.6, near its 52-week high of $66.84, which it reached on May 11, 2021.
K’s POWR ratings reflect this promising outlook. The stock has an overall B rating, which equates to a buy in our proprietary rating system. Additionally, the stock has a B rating for value, stability, and quality.
In addition to the POWR ratings I just highlighted, one can see K ratings for Growth, Stability, Momentum, and Value. here. The stock is ranked #21 in the Food manufacturers industry.
Ingredion Incorporated (INGR)
INGR is a global ingredient solutions company that manufactures sweeteners, starches, nutritional ingredients and biomaterials for everyday products. the Westchester, Ill., The company operates in more than 120 countries and in 60 diverse sectors, including food, beverage, paper and corrugated, brewing and other industries. North America; South America; Asia Pacific; Europe, Middle East and Africa are the segments under INGR.
INGR’s net sales increased 17.4% year-over-year to $1.76 billion for its third quarter, ended September 30, 2021. The company’s gross profit was $323 million of dollars. Its operating profit rose 12.4% from its value a year ago to $172 million. Additionally, the company’s net income rose 28% from the prior year quarter to $119 million.
INGR’s revenue for its fiscal year 2022 is expected to be $7.32 billion, representing year-over-year growth of 6.8%. The company has exceeded consensus EPS in each of the past four quarters. Its EPS is expected to increase 10.8% in its fiscal 2021 and 7.2% in fiscal 2022. INGR’s share price jumped 27.7% during the past year. Moreover, it is currently trading at $100.67, near its 52-week high of $101.45, which it reached on January 10, 2022.
It’s no surprise that INGR has an overall rating of B, which equates to a buy in our POWR rating system. Also, the stock has a B rating for sentiment, stability, and value.
Click here to see additional POWR ratings for INGR (Growth, Dynamics, and Quality). INGR is ranked #27 in the Food manufacturers industry.
Flowers Foods, Inc. (FLO)
FLO offers a wide range of bakery foods to retail and foodservice customers in the United States. The Thomasville, Georgia-based company also has provides frozen baked goods and snack cakes nationwide through customer warehouses. The company markets its products under the Nature’s Own, Dave’s Killer Bread (DKB), Wonder, Canyon Bakehouse, Tastykake, Sunbeam Bread, Merita, European Bakers, Butternut, Bunny Bread and Mrs. Freshley’s.
FLO’s sales increased 3.9% year-over-year to $1.03 billion for the third quarter ended October 19, 2021. The company’s operating income was $52.12 million. His net income is $38.85 million. Additionally, the company’s EPS was $0.18.
Analysts expect FLO’s revenue for its fiscal year 2022 to be $4.4 billion, up 1.8% year-over-year. FLO has an impressive history of earnings surprises; it has beaten consensus EPS estimates in each of the past four quarters. Additionally, its EPS is expected to rise slightly in fiscal 2022. Its share price has risen 29.7% over the past year and is currently trading at $28.27, near its high on 52 weeks of $28.51, which it reached on January 10, 2022.
FLO’s POWR ratings reflect this promising outlook. The stock has an overall B rating, which equates to a buy in our proprietary rating system. Also, the stock has an A rating for quality.
In addition to the POWR ratings I just highlighted, one can see FLO ratings for Value, Stability, Growth, Sentiment, and Momentum. here. FLO is ranked #13 in the Food manufacturers industry.
Shares of GIS were trading at $69.31 per share on Friday morning, up $0.41 (+0.60%). Year-to-date, the GIS has gained 3.64%, compared to a -2.35% rise in the benchmark S&P 500 over the same period.
About the Author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master’s degree in economics, her interest in financial markets motivated her to begin her career in investment research. Following…