May 12, 2021
6 min read
This story originally appeared on StockMarket
Do you have those top food stocks on your radar right now?
As an investor, you will always want to invest in something that you are familiar with in the stock Exchange. Now what better than food stocks when it comes to knowing the company’s products. It might not be the most sophisticated industry, but it is something that we need day in and day out. The food industry includes businesses that focus primarily on providing food and non-alcoholic beverages. This includes grocery stores, food distribution companies, and other businesses that offer basic consumer products that we eat or drink.
Some of the big names in the industry would include Tyson Foods (NYSE: TSN) and The Kroger Co (NYSE: KR). Both titles have trended upward since the start of the year. On the one hand, TSN stock has risen by more than 24% this year. On the other hand, the stock of KR also increased by more than 20%. So it’s safe to say that food businesses will thrive regardless of the economic climate. In addition, with most countries showing signs of economic reopening overall, this would allow food stocks to flourish even more. Now, with all of that in mind, let’s take a look at some of the main food stocks in the stock market today.
Main food stocks to watch out for right now
Darling Ingredients Inc
First on the list, we have the Darling ingredients. It is a company that develops and produces sustainable natural ingredients, creating a range of ingredients and personalized specialty solutions for its customers. In addition, Darling also provides grease trap services to catering establishments, environmental services to food processors, and sells cooking oil delivery and collection equipment to restaurants. The company’s shares have been steadily increasing for the past year. It has recorded gains of over 200% over the past year. With the company due to release its first quarter earnings report, investors would be eager to see if its current trajectory continues.
In mid-April, EnviroFlight, a 100% owned division by Darling, announced the development of a new R&D and enterprise center in Apex, North Carolina. The facility is expected to be ready in early 2020. This new facility will allow more emphasis to be placed on targeted research areas.
In addition, Darling’s Rousselot brand strengthened its leadership in application science with a renewed applications lab in Brazil earlier this month. This is a strategic decision to further strengthen its network of world-leading laboratories, which already includes a global laboratory in Belgium and a regional laboratory in China. Considering how quickly the business is growing, would you consider buying DAR stock?
[Read More] Trend in tech stocks to buy this week? 4 Know
Then we have the global provider of food, uniforms facilities and services, Aramark. The majority of its clients come from the education, health, business, sports and leisure industries. The company operates in three segments: Food and Support Services North America (FSS North America), Food and Support Services International (FSS International) and Uniforms and Career Clothing (Uniforms) . Although ARMK stock has been trading sideways since the start of the year, people may have forgotten that it is already up 50% from a year ago. That being said, the next earnings report would likely determine the direction of the stock in the coming months.
In April, Aramark signed an agreement to acquire Next Level Hospitality, a leading provider of culinary and environmental services to the senior living industry. He specializes in skilled nursing and rehabilitation facilities. This acquisition will allow Aramark to partner with a company that is committed to serving its customers with the ability to leverage a scalable operating model.
In the same month, Aramark Canada also announced the renewal of its eight-year partnership agreement with Creequest Corporation. This is to provide food and concierge services to Detour Lake Mine. With that in mind, would you consider adding ARMK stocks to your portfolio?
Third, on the list we have the fast food company, Wendy’s. The company engages in the operation, development and franchise of a system of quick service restaurants. It has 5,852 restaurants in the United States, of which 357 were operated by the company and 5,495 by franchisees. Another food industry stock that suffered during the pandemic is WEN stock. As a result, the stock has been trading sideways for a year. However, with the economy reopening in most parts of the world, this could well be a turning point for the company.
On Tuesday, the company announced plans to open up to 400 restaurants across the UK, with the first located in Reading in June. The company hopes that this revival “spearheadÂ»An expansion on a European scale. This aggressive approach shows that the company is optimistic about expanding its business and preparing for post-pandemic life. Wendy’s will release its first quarter earnings report on May 12, 2021. Investors would therefore be on the lookout for the performance of its breakfast business.
Notably, the company’s continued drive to expand its breakfast-for-breakfast offerings is likely to have boosted Q1 revenue. Given the enthusiasm surrounding the business, would you consider WEN stock to be one of the best food products to buy?
[Read More] 4 cyclical stocks to watch in 2021
The Kraft Heinz Company
To sum up the list, we have the global food and beverage company, Kraft Heinz. The company’s segments include the United States, International and Canada. Its products include various brands, such as Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Maxwell House, Kool-Aid, Ore-Ida, Jell-O and many more. With staples like macaroni and cheese and ketchup, the company has taken advantage of the pandemic where people are spending more time at home and looking for comfort foods. Now when you look at the company’s stock it has been on an uptrend since the start of the year. In fact, it’s at its 52-week high and trading at $ 43.26 at Tuesday’s close.
In April, Kraft’s Jet-Puffed launched two new marshmallow snack lines that would please marshmallow lovers across the country. It will be available in regular, mini and strawberry flavored marshmallows in a resealable pouch. The premium resealable packaging ensures that every bite of marshmallow tastes as good as the last. So that should give the company’s product a boost, as nearly 50% of Americans snack on marshmallows straight out of the bag.
On top of that, the recent first quarter report released in April also showed healthy numbers. Net sales rose 3.9% to $ 6.4 billion, while net income rose 49% to $ 568 million. This, coupled with the uptrend in the company’s shares, could there be a better time to buy KHC shares?