Recs

6

5-Star Stocks Poised to Pop: Gruma

Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, corn flour and tortilla producer Gruma (NYSE: GMK  ) has earned a coveted five-star ranking.

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

Gruma facts

Headquarters (founded)

San Pedro Garza Garcia, Mexico (1949)

Market Cap

$238.3 million

Industry

 Packaged Foods and Meats

TTM Revenue

$3.64 billion

Management

Chairman/CEO Roberto Barrera

CFO Raul Cano

Competitors

General Mills (NYSE: GIS  ) ,

Hormel Foods (NYSE: HRL  )

CAPS members bullish on GMK also bullish on:

Cemex (NYSE: CX  ) ,

Chesapeake Energy (NYSE: CHK  )

CAPS members bearish on GMK also bearish on:

Ford Motor (NYSE: F  ) ,

General Motors (NYSE: GM  )

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, all 104 All-Star members who have rated Gruma believe the stock will outperform the S&P 500 going forward. These bulls include JTShideler and OtherOracleOfOMA, both of whom are ranked in the top 7% of our community.

In December, JTShideler touched on Gruma's seemingly attractive stock price (which is even cheaper today): "This stock looks over sold to me. Economic downturn should not devastate food producers as much as luxury manufacturers and with its current valuation I think it is worth a nibble."

In a pitch from November, OtherOracleOfOMA takes a more balanced bullish view:

Even in a downturn, people gotta eat. [Gruma] is going to benefit from the intense brand loyalty that's developing for their products, especially amongst the rapidly growing Hispanic population in the USA. Margins are relatively thin, but falling commodity prices should help with that. My only big reservation is that they have no substantive, sustainable competitive advantage - their products can easily be replicated.

What do you think about Gruma, 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 simply click here to get started.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake is a Motley Fool Inside Value pick. Cemex is a selection of Global Gains and Stock Advisor, and the Fool owns shares of it. 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

Fool Disclosure

DocumentId: 834892, ~/Articles/ArticleHandler.aspx, 5/27/2012 7:21:57 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...

Today's Market

updated 1 day ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/25/2012 3:58 PM
GMK $8.80 Up +0.06 +0.69%
Gruma S.A.B. de C.… CAPS Rating: *****
GIS $39.08 Up +0.10 +0.26%
General Mills, Inc… CAPS Rating: *****
GM $22.44 Up +0.40 +1.81%
General Motors Com… CAPS Rating: **
HRL $30.15 Up +0.46 +1.55%
Hormel Foods Corp CAPS Rating: *****
CHK $15.81 Up +0.23 +1.48%
Chesapeake Energy… CAPS Rating: ****
CX $5.47 Down +0.00 +0.00%
Cemex CAPS Rating: ***
F $10.60 Up +0.01 +0.09%
Ford CAPS Rating: ****

Advertisement