4-Star Stocks Poised to Pop: Kellogg

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cereal giant Kellogg (NYS: K) has earned a respected four-star ranking.

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

Kellogg facts

Founded (founded)

Battle Creek, Mich. (1906)

Market Cap

$17.1 billion

Industry

Packaged foods

Trailing-12-Month Revenue

$13.2 billion

Management

CEO John Bryant (since 2011)
CFO Ronald Dissinger (since 2010)

Return on Equity (average, past 3 years)

56.8%

Cash/Debt

$404.0 million / $5.9 billion

Dividend Yield

3.7%

Competitors

General Mills
Nestle
Ralcorp Holdings


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

On CAPS, 91% of the 964 members who have rated Kellogg believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, valuemoneygreen, tapped Kellogg as a particularly tasty income opportunity:

At this price along with the dividend this equity will outperform the market over time in my opinion. When I think of cereal I think of Kellogg. Great brand names! This company has a nice dividend. Look at its ROE and ROI ... WOW. Net profit margins average over 9% and gross margins are not too shaby @ just over 40%. Price is fair with a 7% earnings yield for a wonderful company ... in line with the market so I would bet it will beat the market since the company is one of the better ones in the S&P.

If you want market-beating 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 four-star rating, Kellogg 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 4-Star Stocks Poised to Pop: Kellogg originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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.

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