ConAgra Foods, Inc. (CAG), McCormick & Company, Incorporated (MKC), General Mills, Inc. (GIS): Which Stock Is a Buy in the Packaged-Foods Industry?

JPM recommends a hold stance in this stock

General Mills, Inc. (NYSE:GIS) didn’t have much to surprise on its earnings release last Wednesday. General Mills, Inc. (NYSE:GIS) will be a solid and consistent ~7% EPS grower, plus it has a ~3% annual dividend yield. A 10% total shareholder return is not bad; however, it will not be wrong to say that there are slightly better options in other stocks in the same space. Still, General Mills, Inc. (NYSE:GIS) is recommended for investors who have longer time horizons (two-to-three years) and lower risk tolerances. For investors seeking potentially sizable earnings beats and/or multiple expansion, General Mills, Inc. (NYSE:GIS) may not necessarily be the most attractive option at this time.

Final word

There is one thing that is common in them – none of the companies are expected to be market out-performers in the near term. However, in the long-term, ConAgra Foods, Inc. (NYSE:CAG) seems the best option given its cheap valuations and synergies from Ralcorp. No surprises also means stability within the sector, which is adored by risk-averse investors.

The article Which Stock Is a Buy in the Packaged-Foods Industry? originally appeared on Fool.com.

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