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||8.8||+32.57%||$44.45|
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. Packaged food stocks have been exhibiting considerable strength lately, as evidenced in stocks like Snyder’s-Lance (LNCE), Dean Foods (DF), B&G Foods (BGS), Sanderson Farms (SAFM), and POST.
Of this group, we think POST is the most attractive buy here due to its more modest short-term technical set-up. It still retains the strong intermediate- and long-term uptrend, but presents a more reasonable entry point than its counterparts. POST has been making higher highs and higher lows since September of last year, a trend that is still ongoing. Currently, the stock has pulled back from its $49 highs in mid-July to just below $47, hovering comfortably above its 50-day moving average. We like POST here for a run back above $49 and beyond.
We Would Be Buyers:
At the current price (~$46.93), or on a pullback to the 50-day moving average ($45.45).
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 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: 8.8
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.
Post Holdings – Last Three Months
Post Holdings – Last 12 Months
Post Holdings – Last Five Years
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.