4-Star Stocks Poised to Pop: Flowers Foods

Recs

8

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, bakery goods company Flowers Foods (NYSE: FLO) has earned a respected four-star ranking.

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

Flowers facts

Headquarters (founded)

Thomasville, Ga. (1934)

Market Cap

$2.21 billion

Industry

Packaged Foods and Meats

Trailing-12-Month Revenue

$2.55 billion

Management

CEO George Deese (since 2004)

CFO Steve Kinsey (since 2008)

Return on Equity (average, last three years)

15.9%

Dividend Yield

3.0%

Competitors

Campbell Soup (NYSE: CPB)

Sara Lee (NYSE: SLE)

CAPS Members Bullish on FLO Also Bullish on:

Johnson & Johnson (NYSE: JNJ)

Apple (Nasdaq: AAPL)

CAPS Members Bearish on FLO Also Bearish on:

Coca-Cola (NYSE: KO)

DryShips (Nasdaq: DRYS)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

Over on CAPS, 96.5% of the 291 members who have rated Flowers Foods believe the stock will outperform the S&P 500 going forward. These bulls include All-Star 00100, who is ranked in the top 6% of our community, and paulpharmd.

In late May, 00100 urged Fools to stop and smell the Flowers (at roughly the same price it is today): "Good cash flow, good growth rate. Low debt. Top pick at many firms but stock price hasen't taken off. Yet."

In more recent pitch, paulpharmd expands on the stock as a fresh way to make some bread:

This stock still has a lot of growth left in it. It is fairly valued and it is a well run company that should do well going forward. People will buy bread and buns and donuts regardless of how well the economy is doing and this company is positioning itself to be a leader. Nice dividend is icing on the cake and the P/E looks reasonable especially considering the growth prospects going forward. It is a buy!

What do you think about Flowers, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

“Make Big Money With Options” Motley Fool CFO Ollen Douglass recently made over $100,000 buying options on 7 well known stocks. Now we’re committed to turning his small fortune into a massive one! And we want you to join us! Enter your email address to hear more:

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Johnson & Johnson and Coca-Cola are Motley Fool Income Investor picks. Coca-Cola is also an Inside Value choice. Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 07, 2009, at 2:08 PM, Fool wrote:

    My dad bought 100 shares of Flo in 91 and through several splits we now have 1266 shares. This is a great company.

Add your comment.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 959851, ~/Articles/ArticleHandler.aspx, 11/30/2009 7:50:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
The Public Health-Care Plan's Problem

Related Tickers

11/30/2009 4:01 PM
FLO $22.89 Up +0.06 +0.26%
Flowers Foods, Inc… CAPS Rating: *****
JNJ $62.84 Down -0.05 -0.08%
Johnson & Johnson CAPS Rating: *****
CPB $34.97 Down -0.19 -0.54%
Campbell Soup Comp… CAPS Rating: ****
KO $57.20 Up +0.02 +0.04%
The Coca-Cola Comp… CAPS Rating: ****
DRYS $6.12 Down -0.07 -1.13%
DryShips, Inc. CAPS Rating: ***
AAPL $199.91 Down -0.68 -0.34%
Apple, Inc. CAPS Rating: ***
SLE $12.14 Down +0.00 +0.00%
Sara Lee Corp. CAPS Rating: **

Community: Investing Wiki

Term Of The Hour

Pro forma: Pro forma means "for form" or "for form's sake" and is from the Latin. For financial statements, it is an "as-if" situation.

Want to learn more or edit this definition?
Click here to read more!