Dole Food Company, Inc. (DOLE), Fresh Del Monte Produce Inc (FDP) & Chiquita Brands International Inc (CQB): Why Fruits and Vegetables Should Not Be Part of a Balanced Portfolio

Not only is Dole Food Company, Inc. (NYSE:DOLE) trading at a premium valuation, compared to the trailing industry P/E average of 5.15, but it is also shouldering the highest debt, a negative profit margin and the worst top-line growth. By comparison, Chiquita Brands International Inc (NYSE:CQB) appears to be the cheapest stock, but its awful return on equity, negative profit margin and negative sales growth all indicate that it is not a bargain.

Meanwhile, Fresh Del Monte Produce Inc (NYSE:FDP) appears to be the most stable choice for investors interested in fruits and vegetables. Investors have also taken notice of this disparity between these three companies, as seen in their stock price performance over the past five years.

The fruity bottom line

There’s not much point to buying Dole at the moment, unless you anticipate a higher buyout offer from David Murdock. Otherwise, the company’s fundamentals are too shaky at the moment, and there’s not potential upside for the stock. Fresh Del Monte Produce Inc (NYSE:FDP) looks like it can recover faster than Dole Food Company, Inc. (NYSE:DOLE) and Chiquita Brands International Inc (NYSE:CQB), but it looks like a slow growth story for now. The bottom line is simple – although fruits and veggies should be part of any person’s well-balanced diet, they don’t necessarily belong in a balanced portfolio.

Leo Sun has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Why Fruits and Vegetables Should Not Be Part of a Balanced Portfolio originally appeared on Fool.com.

Leo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.