Natural food stocks have had a good year as Americans grow more health-conscious. Could the trend continue?
Americans are getting much more careful about what they eat, and they have been for at least a decade. The trend has even started manifesting itself on our waistlines, as Americans recently lost our long-held position as most overweight developed nation in the world.
The trend towards healthier eating has also played out in stock market. Sales of organic food went up 20-fold between 1991 and 2011. And the trend doesn't seem to be slowing down at all. Herbalife (HLF) is up 50% for the year, despite Bill Ackman's efforts to short the stock. Whole Foods (WFM) is up 25% for the year – and several of 2012's natural foods IPOs are also yielding similar returns.
We decided to run a screen on natural food stocks. In case the trend starts to slow down, we wanted to look for more reliable dividend stocks, rather than growth stocks. But we also screened for projected growth next year above 9%, indicating that the stock still has room to move.
Beginning with a universe of 21 stocks all from companies that sell natural foods, fruits and vegetables, or health supplements – we were left with 5 companies on our list.
Click on the interactive chart to see analyst ratings over time.
Do you see investing opportunities in any of these natural foods stocks? Use the list below to begin your analysis.
1. Cal-Maine Foods, Inc. (CALM, Earnings, Analysts, Financials): Engages in the production, grading, packaging, marketing, and distribution of shell eggs primarily in the southeastern, southwestern, mid-western, and mid-Atlantic regions of the United States. Market cap at $1.29B, most recent closing price at $53.55.
Dividend Yield: .51%.
Projected EPS Growth Next Year: 9.71%.
2. Fresh Del Monte Produce Inc. (FDP, Earnings, Analysts, Financials): Produces, transports, sources, markets, and distributes fresh and fresh-cut fruit and vegetables worldwide. Market cap at $1.53B, most recent closing price at $27.46.
Dividend Yields: 1.82%.
Projected EPS Growth Next Year: 22.35%.
Dividend Yield: 1.03%
Projected EPS Growth Next Year: 20.56%.
4. Herbalife Ltd. (HLF, Earnings, Analysts, Financials): A network marketing company, sells weight management, nutritional supplement, energy, sports and fitness, and personal care products worldwide. Market cap at $7.32B, most recent closing price at $71.65.
Dividend Yield: 1.7%.
Projected EPS Growth Next Year: 9.08%.
5. Whole Foods Market, Inc. (WFM, Earnings, Analysts, Financials): Engages in the ownership and operation of natural and organic food supermarkets. Market cap at $20.83B, most recent closing price at $55.95.
Dividend Yield: .86%.
Projected EPS Growth Next Year: 17.55%.
(List compiled by James Dennin. Yearly returns 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
- Cal-Maine Foods, Inc.(CALM, Chart, Download SEC Filings)
- Fresh Del Monte Produce Inc.(FDP, Chart, Download SEC Filings)
- GNC Holdings Inc.(GNC, Chart, Download SEC Filings)
- Herbalife Ltd.(HLF, Chart, Download SEC Filings)
- Whole Foods Market, Inc.(WFM, Chart, Download SEC Filings)
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