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 (NYSE: 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 |
$16.2 billion |
| Industry |
Packaged foods |
| Trailing-12-Month Revenue |
$11.1 billion |
| Management |
Chairman/CEO Bill Johnson
CFO Arthur Winkleblack
|
| Return on Equity (Average, Past 3 Years) |
45.9% |
| Cash/Debt |
$700.5 million / $4.7 billion |
| Dividend Yield |
3.8% |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 846 members who have rated Heinz believe the stock will outperform the S&P 500 going forward. These bulls include fenderjb401 and NHWeston.
Just last month, fenderjb401 tapped Heinz as a tasty way to play defense: "Given the prospect for a double-dip recession (or worse) households will be eating at home more or eating at lower-priced fast-food outlets -- and the demand for Heinz condiments will grow."
Currently, Heinz even sports a cheapish price-to-cash flow of 11. That represents a discount to other packaged-food plays like General Mills (NYSE: GIS ) (14.4), Kraft (NYSE: KFT ) (18.2), and Unilever (NYSE: UL ) (13.2).
CAPS member NHWeston elaborates on the Heinz bull case:
You know the old argument about why you buy booze stocks -- cause people drink when times are good and people drink when times are bad. Well, the same logic applies to ketchup and mustard and all the other good stuff these folks make. ... [A]nd now they are moving overseas, nipping small local brands of spices and sauces with selective sophistication. Might even get taken out themselves. Good for a 15-20 percent upward levitation with enough time.
What do you think about Heinz, 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!
Interested in another easy way to track Heinz? Add it to your watchlist.
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