4-Star Stocks Poised to Pop: Kraft Foods
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, packaged-foods giant Kraft Foods (NYS: KFT) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Kraft's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Northfield, Ill. (2000)|
|Market Cap||$65.9 billion|
|Trailing-12-Month Revenue||$53.5 billion|
|Management||Chairman/CEO Irene Rosenfeld|
CFO David Brearton
|Return on Equity (Average, Past 3 Years)||8.8%|
|Cash/Debt||$2.06 billion / $29.6 billion|
|Competitors||General Mills (NYS: GIS) |
PepsiCo (NYS: PEP)
Unilever (NYS: UL)
Sources: S&P Capital IQ and Motley Fool CAPS.
Earlier this week, kpoeppel listed several of Kraft's positives: "Consumer non-cyclical. Steady dividend, good yield. Like [Coca-Cola (NYS: KO) ], it has an economic moat in the form of brand loyalty. Easy to understand business."
Kraft even sports a cheapish price-to-sales multiple of 1.2. That represents a discount to competitors like General Mills (1.7), PepsiCo (1.6), and Unilever (1.6).
CAPS member wowdwarf2 offers a few more reasons to start digging into Kraft:
[S]imply put people need to eat and Kraft has coined the term "Staple Cheap"
[D]uring this recession they will gain market share and still turn a dime while paying a very nice [dividend]
That is a one trick pony worth every penny
What do you think about Kraft, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Coca-Cola and PepsiCo. Motley Fool newsletter services have recommended buying shares of Coca-Cola, PepsiCo, and Unilever, as well as creating a diagonal call position in PepsiCo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.