4 Food Stocks To Watch In April 2022
With inflation on the rise, it continues to pose headwinds in both the stock market and the economy. And while it’s unclear how long this trend will continue, it’s never a bad idea to consider adding shares of companies that offer stability and reliability to diversify your portfolio. As such, food stocks could be worth considering. Since people are always going to need to eat, these companies see consistent demand regardless of what’s happening to the economy. On top of that, with more and more people dining out again, restaurants will be stocking up on ingredients as well.
For instance, PepsiCo (NASDAQ: PEP) and BeyondMeat (NASDAQ: BYND) recently announced the debut of the Beyond Meat Jerky. The plant-based jerky offers a full-flavored, on-the-go snack experience and is now available in stores nationwide. On top of that, it is also Beyond Meat’s first shelf-stable product, allowing it to be distributed everywhere from grocery stores, gas stations, and pharmacies to name a few. Evidently, even the food industry does not lack innovation. On that note, take a look at these four food stocks in the stock market today.
Food Stocks To Buy [Or Sell] Today
- Constellation Brands (NYSE: STZ)
- Conagra Brands Inc. (NYSE: CAG)
- McCormick & Company (NYSE: MKC)
- Tyson Foods Inc. (NYSE: TSN)
Starting us off today is Constellation Brands. The company is primarily a producer and marketer of beer, wine, and spirits. Impressively, Constellation is the largest beer import company in the U.S, measured by sales. Next to that, it also has the third-largest market of all major beer suppliers. For a sense of scale, the company has about 40 facilities and hires approximately 9,000 employees. Its brand portfolio, which spans more than 100 brands, includes the likes of Robert Mondavi, Ruffino, Corona, Svedka Vodka, and many more.
Just yesterday, the company reported its fourth-quarter 2022 financial results which beat Wall Street estimates. Jumping in, the company brought in net sales of $2.1 billion, climbing 8% from the prior year’s $1.95 billion. As for its profits, Constellation managed to earn $395.4 million this quarter compared to $382.9 million last year. Accordingly, adjusted earnings per share rose to $2.37 a share from $1.82 a share, representing an increase of 30%. What’s more, the company plans to repurchase $500 million of shares in the first quarter of fiscal 2023. Given the strong quarterly financials, would you consider buying STZ stock?
Following that, we have Conagra Brands. In brief, it is a company that engages in marketing and selling edible consumer packaged goods. For the most part, it makes and sells products under a wide variety of brands. The likes of which are mostly marketed towards supermarkets and restaurants among other food service establishments. This includes food products such as cooking oil, frozen dinners, and such. Being a key player in the food industry, I could see why investors would be keen on CAG stock. In fact, the stock has risen by about 11% over the past month.
Yesterday, Conagra reported results for the third quarter of fiscal year 2022. For starters, net sales were up by 5.1% year-over-year to $2.9 billion. Organic net sales also saw an increase of 6% this quarter. This growth in organic sales was driven by an 8.6% improvement in price/mix. Next to that, the company brought in adjusted earnings per share of $0.58. On a two-year basis, this is an increase of 11.1%. Financials aside, Conagra also updated its fiscal 2022 fourth-quarter guidance. Accordingly, the company expects organic sales to grow by approximately 7%. As for earnings, it forecasts $0.64 per share. With this quarterly performance in mind, should you invest in CAG stock?
Another top food stock is McCormick. For the most part, it is a food company that manufactures, markets, and distributes flavoring products. These include spices, seasoning mixes and condiments among others. McCormick primarily sells to retail outlets, food manufacturers, and foodservice businesses. Additionally, its products are available in many countries. As a matter of fact, it is the largest producer of spices and related food products worldwide, based on revenue. Despite overall market volatility, MKC stock has risen by nearly 15% over the past year.
On March 29, the company reported its fiscal first-quarter performance. Sales rose by 3% compared to the same period last year. In the Flavor Solutions segment, net sales grew by 12% from $534.7 million to $596.3 million. McCormick’s base business, new product, and acquisition growth all contributed to this impressive increase. Furthermore, the company brought in earnings per share of $0.57 for the quarter. McCormick also provided its outlook for the year. Notably, it expects sales to grow by 3% to 5%. The company expects growth to be driven by brand marketing, new products, category management, and differentiated customer engagement. And with that, do you think MKC stock is worth buying?
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Closing off our list today is Tyson Foods, a food company that produces a range of frozen and refrigerated food products. It operates a portfolio of products and brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, and State Fair. Apart from that, the company also has an integrated operation that consists of breeding stock, contract farmers, feed production, processing, and transportation of chicken and related products. Notably, TSN stock has risen by nearly 20% over the past year. In February, Tyson announced its fiscal first-quarter financial report.
Impressively, its GAAP earnings per share skyrocketed to $3.07, an increase of 140% year-over-year. Meanwhile, its total sales increased to $12.9 billion, up by over 24% from a year ago. CEO Donnie King remarked, “Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace. We remain committed to winning with our team members, winning with our customers and consumers and winning with excellence. We have the right team who are taking the right actions and as a result, we believe our future is bright.” All in all, the company’s performance shows the resilience of its multi-protein portfolio despite all the marketplace volatility. With that said, would you consider adding TSN stock to your portfolio today?