5-Star Stocks Poised to Pop: Zhongpin

Recs

10

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese meat and food processor Zhongpin (Nasdaq: HOGS) has earned a coveted five-star ranking.

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

Zhongpin facts

Headquarters

Changge City, China

Market Cap

$215.1 Million

Industry

Meat Products

Trailing-12-Month Revenue

$500.6 Million

Management

Founder/Chairman/CEO Xianfu Zhu

CFO Feng Wang

Return on Equity (Average, Past Two Years)

19.25%

Competitors

China Yurun Food Group

People's Food Holdings

CAPS Members Bullish on HOGS Also Bullish on:

General Electric (NYSE: GE)

CAPS Members Bearish on HOGS Also Bearish on:

Citigroup (NYSE: C)

Bank of America (NYSE: BAC)

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

Over on CAPS, 594 of the 604 members who have rated Zhongpin -- or 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include BWharam and mulledover.

In December, BWharam tapped the stock as a "yummy" opportunity:

This is one of the major suppliers for Yum! Brands [ (NYSE: YUM)] in China. As the world economies turn China will be a major beneficiary and YUM, and therefore [Zhongpin], will get their piece of the pie.

Also; I had read that [Zhongpin] is adding veggies to the items they supply. The only real downside I see is the dependency on YUM, I would like HOGS to be a little more diversified.

In a more recent pitch from January, mulledover added more meat to the bull case:

Earning estimates for 25% a year growth and sales that seem to be doubling year over year and a nice simple business (pork processing) in a fragmented industry. Comparing current revenues (500M) to those of Hormel [ (NYSE: HRL)], Tyson [ (NYSE: TSN)] (7B to 27B), it would appears that there is room for further growth.

What do you think about Zhongpin, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so 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. 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.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 842992, ~/Articles/ArticleHandler.aspx, 12/3/2009 1:04:51 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
Warren Buffett on Sex

By The Motley Fool

Warren Buffett on Sex

Related Tickers

12/3/2009 12:47 PM
BAC $16.10 Up +0.45 +2.88%
Bank of America Co… CAPS Rating: ***
HOGS $14.03 Up +0.22 +1.61%
ZHONGPIN INC. CAPS Rating: *****
GE $16.23 Up +0.16 +1.00%
General Electric C… CAPS Rating: ****
TSN $12.47 Up +0.28 +2.30%
Tyson Foods, Inc. CAPS Rating: **
HRL $38.32 Up +0.09 +0.24%
Hormel Foods Corp CAPS Rating: ****
C $4.10 Down +0.00 +0.00%
Citigroup, Inc. CAPS Rating: **
YUM $35.47 Up +0.15 +0.42%
Yum! Brands, Inc. CAPS Rating: ****

Community: Investing Wiki

Term Of The Hour

Annual report: SEC regulations require that each publicly traded company issue an annual report to shareholders. The annual report contains certain minimal financial statements of the company for its fiscal year. These are the numbers that go into calculation of the earnings per share and the book value.

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