At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.
|Company||Symbol||Industry||Stock Rating||YTD% Gain||S.T. Stop Loss|
|Post Holdings Inc||POST||Packaged Foods & Meats||7.2||+23.59%||$43.20|
Why We Like The Stock:
Post Holdings (POST) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. 2013 has been kind to the packaged foods space, as evidenced in big gainers like Dean Foods (DF), B&G Foods (BGS), Sanderson Farms (SAFM), and POST. We like POST in particular among these stocks for its strong long- and intermediate-term uptrend, as well as its prospects in the short-term.
Recently, the stock traded as high as $47.13 in mid-June before pulling back and basing around $44. Currently, the stock has just crossed above all of its major short-term moving averages and is back on the upswing. POST has support at $44, and again at $42, which makes it a relatively safe bet moving forward. We like the stock at current prices for a run back to its $47.13 resistance, though if it failed to break out there, we would sell and take the +5% gain.
We Would Be Buyers:
At the current price (~$44.92).
Post Holdings, Inc., is a holding company. The company is a manufacturer, marketer and distributor of branded ready-to-eat cereals in the United States and Canada. The company’s portfolio of brands includes Honey Bunches of Oats, Pebbles, Great Grains, Grape-Nuts, Shredded Wheat, Raisin Bran, Golden Crisp, Alpha-Bits and Honeycomb. In May 2013, Post Holdings Inc. completed the previously announced acquisition of the branded and private label cereal, granola and snacks business of Hearthside Food Solutions, a portfolio company of Wind Point Partners.
Stock Rating: 7.2
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.
Post Holdings – Last Three Months
Post Holdings – Last 12 Months
Post Holdings – Last Five Years
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At the time of publication the editor and affiliated companies own the following positions: None
Note: Positions may be bought or sold while this publication is in circulation without notice.