While the Zacks Food – Miscellaneous industry battled several hurdles this year, there are companies that have braved those, and currently appear quite appetizing for 2019. Certainly, these food players’ strong strategic endeavors have helped them counter the obstacles and be on growth trajectory.
Markedly, industry participants are set to continue benefiting from prudent acquisitions and divestitures, which help them refine their portfolios. Also, product launches, impactful promotional skills and innovations enable players to keep pace with consumers’ evolving preferences. Evidently, rising health consciousness is propelling companies to augment organic and natural offerings, which, in turn, has been aiding revenues.
Additionally, companies in the space are resorting to restructuring and cost-saving measures. Together, these growth drivers are likely to help companies tackle rising commodity and freight costs, supply-chain hurdles and tariff-related concerns. That said, we handpicked five promising stocks from the Food – Miscellaneous space, which includes providers of products ranging from fruits and vegetables to packaged items such as snacks, spices and ready-to-cook meals, among others.
These stocks carry a Zacks Rank #2 (Buy) each and boast impressive earnings surprise history. Most of them also possess noteworthy long-term earnings per share growth rate. Also, some stocks have witnessed a splendid bull run so far this year, whereas some have seen positive estimate revisions. Clearly, these attributes are likely to help these stocks fare better than the market in 2019. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Satiating Stocks for 2019
McCormick & Company, Incorporated MKC is undoubtedly a solid bet. This Maryland-based company’s shares have gained 33.2% so far this year, against the industry’s decline of close to 22%. McCormick, which has a four-quarter average positive earnings surprise of 5.2%, has been gaining from dedicated focus on buyouts, product innovations, cost-containment measures and efficient marketing initiatives. Notably, this leading manufacturer and distributor of spices and seasonings carries a long-term growth rate of 9%.
Investors can also count on Lamb Weston Holdings, Inc. LW. This Idaho-based company possesses a market cap of $10.8 billion. Also, the company has seen its shares rally as much as 28.1% this year. Notably, Lamb Weston carries a long-term growth rate of 11.8% and its earnings beat the Zacks Consensus Estimate by average of nearly 7% in the trailing four quarters.
The Chefs' Warehouse, Inc. CHEF, with a VGM Score of A, is another promising pick. The company’s shares have surged nearly 48% year to date, courtesy of its impressive earnings surprise history. Notably, this Connecticut-based company has outperformed the Zacks Consensus Estimate by average of 54.7% in the trialing four quarters. Moreover, the consensus mark for 2019 earnings has gone up by a notch in the past 60 days. The company’s robust potential is reflected in its growth initiatives and long-term growth rate of 19%.
Smart & Final Stores, Inc. SFS also warrants a look. The company flaunts a favorable earnings surprise history. Notably, it has surpassed the consensus mark for earnings by average of 25.8% in the trailing four quarters. This California-based food retailer has a long-term growth rate of 3% and a VGM Score of A.
Finally, investors can place bets on Blue Apron Holdings, Inc. APRN. This New York-based company has seen the Zacks Consensus Estimate for its bottom line improve considerably for 2018 and 2019. Also, its earnings beat the Zacks Consensus Estimate by average of nearly 19% in the trailing four quarters.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year ahead. Be among the first to see the new Zacks Top 10 Stocks >>
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