6 Big Food Stocks to Buy Now

You see them on television, on billboards, on grocery store shelves and in your kitchens. The food retail industry is huge, with sales at grocery stores alone topping $606 billion each year.

As competitive as the food products industry is, a few big brands are dominating, consistently growing sales and earnings quarter-after-quarter.

In today’s blog, I’d like to highlight a few of those market leaders before they report earnings next.

Below is a table listing six highly-ranked foods products companies.

As you can see, they span several grocery aisles: Canned soups (Campbell Soup Company (CPB)), Produce (Fresh Del Monte Produce Inc (FDP)), boxed cereals (General Mills, Inc. (GIS)), meat products (Hormel Food Corp’s (HRL) Spam), jam (J M Smucker Co (SJM)), and salad dressings (Lancaster Colony Corp.’s (LANC) Marzetti brand).

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Each of these companies brings in billions of dollars in sales each year, and passes with flying colors in my Portfolio Grader tool. Then again, only one of these companies makes the cut in my premium newsletter, Blue Chip Growth

While Hormel Foods is best known for its namesake meat products, it has a diverse portfolio of products that include Skippy peanut butter, CHI-CHI’s salsas, Muscle Milk protein drinks, Stagg chili and SPAM.

In addition, the company’s Jennie-O Turkey division provides (as you probably guessed) turkey products, including fresh ground turkey, turkey bacon and turkey burgers.

Hormel Foods diverse product offerings and large global footprint have added nicely to the company’s bottom line. For the past four years, Hormel Foods has achieved at least 11% annual EPS growth. For the past three years, Hormel has achieved record earnings.

And Hormel is looking great for the long haul. It recently announced that it is buying Justin’s, a major producer of specialty nut butters. This represents a substantial growth opportunity for Hormel, as it adapts to changing consumer tastes. Looking ahead to FY 2016, Hormel is targeting between $1.56 and $1.60 EPS. This is in line with the Street view, and represents between 19.7% and 21.2% annual earnings growth. HRL offers a great blend of growth and value, earning an A-rating in Portfolio Grader.

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