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4-Star Stocks Poised to Pop: Kellogg

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cereal giant Kellogg (NYSE: K  ) has earned a respected four-star ranking.

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

Kellogg facts

   
Headquarters (Founded) Battle Creek, Mich. (1906)
Market Cap $17.5 billion
Industry Processed and packaged goods
Trailing-12-Month Revenue $13.0 billion
Management CEO John Bryant (since January 2011)
CFO Ronald Dissinger (since January 2010)
Return on Equity (Average, Past 3 Years) 54.2%
Cash/Debt $582 million / $6.04 billion
Dividend Yield 3.5%
Competitors General Mills (NYSE: GIS  )
PepsiCo (NYSE: PEP  )
Kraft Foods (NYSE: KFT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 896 members who have rated Kellogg believe the stock will outperform the S&P 500 going forward. These bulls include All-Star shayangol, who is ranked in the top 10% of our community, and rocketman25.

Just last month, shayangol tapped Kellogg as a tasty way to play defense: "[G]reat company, low beta which id prefer in a volatile market ... oversold territory which is bullish and its near its 52 week low ... ill take lots thanks."

Kellogg even sports a whopping three-year average return on equity of 54%. That's higher than that of competitors like General Mills (26%), Kraft (9%), and PepsiCo (33%).

CAPS member rocketman25 elaborates on the Kellogg bull case:

With the economy down, or in some estimations side-ways, consumer staples are a defensive play and normally go up. This has not been the case for [Kellogg]. With a new 52 week low reached on 11/29 this stock is posed for a rebound, and should outpace the S&P over the next 6 months.

What do you think about Kellogg, 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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Kellogg and PepsiCo, as well as creating a diagonal call position in PepsiCo. The Fool owns shares of PepsiCo. 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
K $50.27 Up +0.07 +0.14%
Kellogg Company CAPS Rating: ****
PEP $68.64 Down -0.17 -0.25%
PepsiCo, Inc. 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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