5 Cheap Food Stocks to Buy


5 Cheap Food Stocks to Buy

The food sector is a large and diverse market that offers many opportunities for investors. Food stocks can benefit from rising consumer demand, changing preferences, innovation, and consolidation. However, not all food stocks are created equal. Some may be overvalued, facing competitive pressures, or struggling with operational issues. Therefore, investors need to be selective and look for food stocks that offer attractive valuations, strong fundamentals, and growth potential.

In this article, we will be taking a look at 5 cheap food stocks to buy based on their price-to-earnings (P/E) ratios, earnings growth, dividend yields, and hedge fund sentiment. These stocks are:

  • Performance Food Group Company (NYSE: PFGC)
  • Conagra Brands, Inc. (NYSE: CAG)
  • Campbell Soup Company (NYSE: CPB)
  • General Mills, Inc. (NYSE: GIS)
  • Kellogg Company (NYSE: K)

Let’s dive into the details of each stock and see why they are worth buying.

Performance Food Group Company (NYSE: PFGC)

Performance Food Group Company (NYSE: PFGC) is one of the largest foodservice distributors in the U.S., serving over 200,000 customers across various segments such as restaurants, schools, hospitals, and convenience stores. The company offers a wide range of products, including fresh meats, seafood, dairy, produce, beverages, snacks, and bakery items.

Performance Food Group Company (NYSE: PFGC) has a low P/E ratio of 14.8, which is well below the industry average of 24.4. The company also has a high earnings growth rate of 42.6% for the current year and 16.9% for the next year. The company has been recovering from the pandemic-induced slowdown in the foodservice industry and has been expanding its customer base and product offerings through acquisitions and partnerships.

Performance Food Group Company (NYSE: PFGC) is also favored by hedge funds, as it ranks 12th among the best food stocks to buy now according to Insider Monkey’s Q2 2022 database of 895 elite hedge funds. The number of bullish hedge fund positions on the stock increased by 3 in the second quarter and reached 25 by the end of June.

Conagra Brands, Inc. (NYSE: CAG)


Performance Food Group Company (NYSE: PFGC)

Conagra Brands, Inc. (NYSE: CAG) is a leading packaged food company that owns many well-known brands such as Marie Callender’s, Healthy Choice, Slim Jim, Orville Redenbacher’s, Hunt’s, and Duncan Hines. The company operates in four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.

Conagra Brands, Inc. (NYSE: CAG) has a low P/E ratio of 15.6, which is below the industry average of 18.9. The company also has a solid earnings growth rate of 10% for the current year and 7.4% for the next year. The company has been benefiting from strong consumer demand for its products amid the pandemic and has been investing in innovation and marketing to drive growth.

Conagra Brands, Inc. (NYSE: CAG) also offers a generous dividend yield of 3%, which is higher than the industry average of 2%. The company has a payout ratio of 46%, which indicates that it can sustain its dividend payments while retaining enough earnings for reinvestment. The company has raised its dividend for three consecutive years.

Campbell Soup Company (NYSE: CPB)


Conagra Brands, Inc. (NYSE: CAG)

Campbell Soup Company (NYSE: CPB) is a global food company that produces and markets soups, sauces, snacks,

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