These Consumer Packaged Goods Stocks Are Popular Among Investors
Summary
- Tyson Foods
Kraft Heinz, Kellanova, General Mills
TSN
and Hormel are among the gurus of consumer advocacy companies.
GIS
With Thanksgiving just weeks away, investors may be interested in companies that benefit from the annual holiday that brings family and friends together.
Although the American Farm Bureau Federation’s annual survey for 2023 has not yet been released, the average cost of a 12-course feast for 10 people was $64.05 in 2022 and $53.31 in 2021. Although the overall cost is not yet known, AFB expects turkey prices to drop 22% this year, falling to $1.27 per pound.
As a result, good value opportunities can be found among consumer defensive stocks popular with gurus.
The GuruFocus Aggregated portfolioa Premium feature based on 13F filings, found agricultural and packaged food companies owned by more than 10 gurus at the end of the second and third quarters, including Tyson Foods Inc. (TSN, Financial), The Kraft Heinz Company (KHC, Financial), Kellanova Co. (K, Financial), General Mills Inc. (GIS, Financial) and Hormel Foods
HRL
Tyson Foods
Holding a combined stock portfolio weighting of 7.44%, 18 Gurus have positions in Tyson Foods (TSN, Financial).
The Springdale, Arkansas-based processor of chicken, beef, pork and even turkey products has a market cap of $16.66 billion; its shares were trading around $46.85 on Tuesday with a price-earnings ratio of 50.92, one price-book ratio of 0.89 and one price-sales ratio of 0.31.
THE GF value line
VALUE
suggests that the stock is currently significantly undervalued based on its historical ratios, past financial performance, and analysts’ future earnings projections.
Tyson Foods GF Value Line
At 84 out of 100, the GF score indicates that the company has good potential for outperformance, driven by high scores for profitability, growth and value, average scores for financial strength and a low momentum score.
Tyson’s GF Score
Of the the gurus invested at Tyson Foods, Yaktman Asset Management (Professions, Wallet) holds the largest stake with 0.86% of its shares outstanding. THE T Rowe Price Equity Income Fund (Professions, Wallet) And Yaktman Fund (Professions, Wallet) also hold significant positions in the stock.
Kraft-Heinz
Fourteen gurus hold positions at Kraft Heinz (KHC, Financial), representing a cumulative weight of 8.19%.
Based in Chicago, the owner of the Oscar Mayer, Kraft, Velveeta, Heinz and Jell-O brands has a market capitalization of $40.57 billion; its shares were trading around $33.08 on Tuesday with a price-earnings ratio of 13.67, one price-book ratio of 0.82 and one price-sales ratio of 1.51.
According to GF value linethe stock is currently slightly undervalued.
Kraft Heinz GF Value Line
THE GF score of 62 implies that the company has low potential for future performance due to a high profitability ranking, more moderate scores for financial strength and value, and low scores for growth and momentum.
Kraft Heinz GF Score
With a stake of 26.51%, Warren Buffett (Professions, Wallet) is the largest in the company shareholder guru. Other top guru investors include First Eagle investment (Professions, Wallet), Bill Gates (Professions, Wallet)’ foundation trust, Jim Simons (Professions, Wallet)’ Renaissance Technologies and Ray Dalio (Professions, Wallet) from Bridgewater Associates.
Kellanova
Kellanova (K, Financial) is owned by 13 gurus with a combined stock portfolio weighting of 7.79%.
The Chicago-based company, created as a spinoff from cereal producer Kellogg to make snacks like Cheez-It crackers, Pringles chips, Pop-Tarts and Rice Krispies Treats, has a market capitalization of 17 .48 billion dollars; its shares were trading around $51.05 on Tuesday with a price-earnings ratio from 8:42 p.m., a price-book ratio of 4.41 and one price-sales ratio from 1.11.
Based on GF value linethe stock is currently slightly undervalued.
Kellanova GF Value Line
THE GF score of 67 means that the company has low performance potential. Despite high rankings for profitability and value, growth and financial strength ratings are more moderate and momentum is weak.
Kellanova’s GF Score
The Simons company is the largest in Kellanova shareholder guru with a stake of 0.71%. Mason Hawkins (Professions, Wallet), the Dalio company, Mario Gabelli (Professions, Wallet), Ken Fisher (Professions, Wallet), Mark Hillman (Professions, Wallet), Joel Greenblatt (Professions, Wallet), John Hussman (Professions, Wallet) and several other gurus also own the stock.
General mills
With a combined stock portfolio weighting of 2.60%, 11 gurus are invested in General Mills (GIS, Financial).
The company known for its Pillsbury, Betty Crocker and Cheerios products, headquartered in Minneapolis, has a market capitalization of $37.94 billion; its shares were trading around $65.27 on Tuesday with a price/earnings ratio from 15.92, a price-book ratio of 3.70 and one price-sales ratio of 1.93.
THE GF value line suggests the stock is currently slightly undervalued.
General Mills GF Value Line
With a GF score of 62, the company will likely experience poor performance in the future. It scored high on profitability and average scores on three of the criteria, but did not receive a dynamic ranking.
General Mills GF Score
Owning 0.61% of General Mills’ outstanding shares, Simons’ Renaissance Technologies has the largest stake among the Gurus. Bridgewater by Dalio, Gabelli, Mairs and power (Professions, Wallet), Fisherman, Jeremy Grantham (Professions, Wallet) and Greenblatt, among others, also positions in stock.
Hormel Foods
Representing a combined equity portfolio weight of 3.70%, 10 gurus are invested in Hormel Foods (HRL, Financial).
The Austin, Minn.-based company, whose brands include Jennie-O turkey, has a market cap of $17.83 billion; its shares were trading around $32.63 on Tuesday with a price-earnings ratio from 20.26, a price-book ratio of 2.31 and one price-sales ratio of 1.48.
According to GF value linethe stock is currently significantly undervalued.
Hormel Foods GF Value Line
Hormel is likely to have average performance potential in the future, based on its GF score out of 79. It received high ratings in three of the categories, average growth ratings, and a low momentum ranking.
Hormel Foods GF Score
With a stake of 0.96%, Mairs and power (Professions, Wallet) is the largest guru shareholder of Hormel Foods. Other top guru investors include the Simons firm, the Gates foundation, the Dalio firm, Tom Russo (Professions, Wallet) and Greenblatt.
Other Popular Choices
Other agricultural products and packaged food companies that 13F filings show were largely owned by gurus in the second and third quarters include Ingredion.
INGRED
HLF
CALM
Investors should be aware that 13F filings do not provide a complete picture of a company’s holdings because the reports only include its positions in U.S. stocks and depository receipts, but they can still provide valuable information. Additionally, the reports only reflect transactions and holdings as of the most recent portfolio filing date, which may or may not be held by the reporting company today or even at the time of publication of this article.
Disclosures
I/we have no positions in the stocks mentioned and do not intend to purchase new positions in the stocks mentioned in the next 72 hours.