5-Star Stocks Poised to Pop: H.J. Heinz

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, condiment king H.J. Heinz (NYS: HNZ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Heinz's business and see what CAPS investors are saying about the stock right now.

Heinz facts

Headquarters (founded)

Pittsburgh (1869)

Market Cap

$17.7 billion

Industry

Packaged foods

Trailing-12-Month Revenue

$11.7 billion

Management

Chairman/CEO Bill Johnson
CFO Arthur Winkleblack

Return on Equity (average, past 3 years)

42.1%

Cash/Debt

$1.4 billion / $5.0 billion

Dividend Yield

3.8%

Competitors

Campbell Soup
ConAgra Foods


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 874 members who have rated Heinz believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, TMFJLo, brought Heinz's solid fundamentals to our community's attention: "30% ROE, [net profit margin] of 7.9%, and 3.7% dividend yield. Debt-to-equity is currently high due to recent acquisitions, but sufficient cash holdings make debt affordable. I also love ketchup."

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Heinz may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 5-Star Stocks Poised to Pop: H.J. Heinz originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of H.J. Heinz. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement