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4-Star Stocks Poised to Pop: B&G Foods

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, shelf-stable foods specialist B&G Foods (NYSE: BGS  ) has earned a respected four-star ranking.

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

B&G facts

Headquarters (Founded) Parsippany, N.J. (1996)
Market Cap $836.2 million
Industry Packaged foods and meats
Trailing-12-Month Revenue $527.9 million
Management

CEO David Wenner

CFO Robert Cantwell

Return on Equity (Average, Past 3 Years) 12.8%
Cash/Debt $101.5 million / $477.9 million
Dividend Yield 4.8%
Competitors

General Mills (NYSE: GIS  )

J.M. Smucker (NYSE: SJM  )

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

On CAPS, 97% of the 213 members who have rated B&G believe the stock will outperform the S&P 500 going forward. These bulls include empraptor and All-Star TMF1000, who is ranked in the top 0.5% of our community.

Just last month, empraptor tapped B&G as a rather tasty income opportunity: "I figure canned foods is a good business to be in in this economy and I figure dividend will make this stock more attractive as yield from other investment options drop."

In fact, B&G currently boasts a juicy dividend yield of 4.8%. That's higher than that of much larger food stocks like General Mills (3.3%), J.M. Smucker (2.7%), and Kraft (NYSE: KFT  ) (3.4%).

CAPS All-Star TMF1000 expands on the B&G outperform argument:

The dividend yield is 5%. That wouldn't be enough for me to add this company, but they were on fire before the mini-crash. They are introducing healthier food products like the Ortega whole wheat taco shell. That new product has been a good one for them. Transportation costs hurt them, but gas prices are lower now and should help the next quarter. They produced $22 million in cash flow for the first six months of the year. And made $1.82 per share in cash flow in 2010. TTM cash flow is $71 million or $1.46 per share giving them a cash flow yield of 8.7%. Very cheap.

What do you think about B&G, 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 B&G? Add it to your watchlist.

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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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Related Tickers

5/25/2012 4:00 PM
BGS $23.13 Up +0.80 +3.58%
B&G Foods, Inc. CAPS Rating: ****
SJM $77.58 Up +0.14 +0.18%
The J.M. Smucker C… CAPS Rating: ****
KFT $38.57 Down -0.12 -0.31%
Kraft Foods, Inc. CAPS Rating: *****
GIS $39.08 Up +0.10 +0.26%
General Mills, Inc… CAPS Rating: *****

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