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.
Why We Like The Stock:
Dean Foods (DF) 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. Packaged foods and meats stocks have held up rather well this past week, as evidenced by charts like Green Mountain Coffee Roasters (GMCR), Tyson Foods (TSN), and DF. DF recently traded north of $10.50 at the end of May, and has crossed above its 5-day moving average this morning. The stock has a nice intermediate-term uptrend and has traded above the 50-day moving average since early April. With some support slightly above the 50-day, we like DF at current prices for a run back to the $10.50 area.
We Would Be Buyers:
At the current price (~$10.03).
Dean Foods Company is a food and beverage company. The company operates through two segments: Fresh Dairy Direct and The WhiteWave Foods Company. Fresh Dairy Direct is a processor and distributor of fluid milk in the United States, and Fresh Dairy Direct also processes and distributes other dairy products in the United States, with products such as milk, ice cream, cultured dairy products, creamers, ice cream mix and other dairy products sold under more than 50 familiar local and regional brands and a wide array of private labels. Fresh Dairy Direct also produces and distributes Tru Moo. WhiteWave is a food and beverage company focused on high-growth product categories that are aligned with emerging consumer trends. In May 2013, Dean Foods Co completed its spinoff of 77.049% interest in its 86.7%-owned WhiteWave Foods Co.
Stock Rating: 7.8
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.
Dean Foods – Last Three Months
Dean Foods – Last 12 Months
Dean Foods – Last Five Years
At the time of publication the editor and affiliated companies own the following positions: DF
Note: Positions may be bought or sold while this publication is in circulation without notice.