After a Super Bowl fast food binge; we decided to find some natural food stocks for healthy investors.
Two days out and most of us at Kapitall are still wary about approaching anything deep fried. The Super Bowl is great for morale, but bad for waist lines. So whether you're heading for the gym, or changing up your mid-day lunch routine, healthy living can't be far from the minds of many Americans.
Feeding the flame of natural food fury is also Dr. Dwight Lundell, the now-famous cardiologist whose self-described war on processed foods has been going viral for the last week.
He blames processed foods – not trans fat or cholesterol – for America's higher than normal rates of obesity and heart disease. It infuriates him that we live in a country where, instead of simply eating better, we are more likely to rectify the problem by prescribing medication or weight-loss surgery.
And yet, corporate America has been on the natural foods bandwagon for a while. The winners in terms of restaurant and dining stocks for the last two years have been those that emphasize a healthier approach: firms like Chipotle (CMG) and Panera Bread (PNRA).
However more traditional and larger companies are eagerly trying to cash in on the trend as well. Campbell's Soup Company (CPB) recently acquired one of the leading producers of organic baby-food, and has set up a special website for its green and gluten-free products. And unlike trendier companies which have high multiples, Campbell's forward price to equity (Forward P/E) ratio is only 15.
We began with a list of stocks working in the natural foods sector. Some of these are companies that work in the area exclusively, while others like Campbell's have made noteworthy acquisitions lately.
Starting with a universe of 20 companies, we narrowed that list to natural food stocks with exceptionally high return on equity (ROE), of at least 15%. Return on equity is a very important statistic to investors, because it's one of the better measures of overall efficiency. It looks at how well the company generates profit off of each dollar of equity it raises.
This narrowed our screen to 7 natural foods stocks. For the record, Marrone Bio Innovations (MBII) doesn't make natural food. But they do make natural pesticides to support the natural foods industry. So they were included in the list.
Click on the interactive chart to view data over time.
Do you see investing opportunities in natural food stocks? Use the list below to begin your own analysis.
1. Annie's, Inc. (BNNY, Earnings, Analysts, Financials): Engages in the production, marketing, and distribution of natural and organic food products. Market cap at $676.65M, most recent closing price at $39.81.
2. Chipotle Mexican Grill, Inc. (CMG, Earnings, Analysts, Financials): Develops and operates fast-casual, fresh Mexican food restaurants in the United States. Market cap at $16.85B, most recent closing price at $543.20.
3. Campbell Soup Co. (CPB, Earnings, Analysts, Financials): Engages in the manufacture and marketing of branded convenience food products worldwide. Market cap at $12.56B, most recent closing price at $39.88.
7. Marrone Bio Innovations, Inc. (MBII, Earnings, Analysts, Financials): Provides bio-based pest management and plant health products for agricultural and water markets in the United States and internationally. Market cap at $301.36M, most recent closing price at $15.95.
(List compiled by James Dennin. Analyst ratings sourced from Zacks Investment Research, all other data sourced from Finviz.)
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- Annie's, Inc.(BNNY, Chart, Download SEC Filings)
- Chipotle Mexican Grill, Inc.(CMG, Chart, Download SEC Filings)
- Campbell Soup Co.(CPB, Chart, Download SEC Filings)
- Green Mountain Coffee Roasters Inc.(GMCR, Chart, Download SEC Filings)
- Lifeway Foods Inc.(LWAY, Chart, Download SEC Filings)
- Panera Bread Co.(PNRA, Chart, Download SEC Filings)
- Marrone Bio Innovations, Inc. (MBII, Chart, Download SEC Filings)
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