Bull’s Eye Report: Post Holdings (POST)

POST currently presents the best value in food stocks

   

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).

Company Profile:

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

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Post Holdings – Last 12 Months

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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.


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