The J.M. Smucker Company (SJM), ConAgra Foods, Inc. (CAG) & Tyson Foods, Inc. (TSN): Stocks to Whet Your Appetite

Tastes like chicken

When it comes to meat and related products, Tyson Foods, Inc. (NYSE:TSN), is an expert in this sector.  It has been able to register growth over the past year, despite some cyclical headwinds.  It appears there is a current decrease in demand for packaged food and rising prices for animal feed.

Despite a downtick in operating earnings, it has been able to achieve an increase of 23% in its free cash flow.  Going forward, demand is expected to loosen up and expansion in Japan could be big. It currently trades at an multiple around 17, the least in the lot of all the companies mentioned.  It also has a forward earnings multiple around 10 which seems to indicate a good price and solid future earnings.

Conclusion

Some tough times may be coming and that means the consumer food industry is one of the safest places to invest. ConAgra Foods, Inc. (NYSE:CAG) and The J.M. Smucker Company (NYSE:SJM) are undoubtedly best buys.  But Tyson Foods, Inc. (NYSE:TSN) also seems to be performing well. In fact, its tough to go wrong with any of these 3 consumer food giants.  Perhaps its time for you to fill your fridge, I mean portfolio, with these fine food operators.

prateek attalani has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Stocks to Whet Your Appetite originally appeared on Fool.com.

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

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