On January 15, Zacks Investment Research upgraded
B&G Foods Inc.
) to a Zacks Rank #1 (Strong Buy) as it has a bright outlook for
the upcoming quarter, the results of which are due next
Why the Upgrade?
B&G Foods performed well in 2012. The food retailer has
surpassed earnings estimates in the first 3 quarters of the year.
The company's outlook for the fourth quarter appears to be
attractive, which is prompting analysts to raise the earnings
estimates for the quarter. The key factors that are driving this
improving outlook include regular acquisitions of complimentary
brands, improving trends in the base business and regular
increases in dividend rates.
B&G Foods' third quarter adjusted earnings of 35 cents per
share surpassed the Zacks Consensus Estimate by 9.4%. Further,
earnings were up 40.0% on a year-over-year basis driven by
revenue growth and margin expansion. Total sales grew 15.9% year
over year to $154.2 million, driven by the addition of the Culver
Specialty brands, which was bought in November 2011 from
(UL), and improving trends in the base business.
The company has a bright outlook for the fourth quarter as
well. It is expecting EBITDA to reach the higher end of its
previously provided guidance of $168 million to $170 million,
reflecting a year-over-year increase of 29% at the mid point.
Subsequently, the company is optimistic about achieving positive
volume growth in the fourth quarter.
Other Stocks to Consider
The food retailers which have a favorable Zacks Rank are also
performing well and worth considering are
Smithfield Foods, Inc.
) - Zacks Rank #1 (Strong Buy),
Tyson Foods Inc.
) - Zacks Rank #2 (Buy), and
) - Zacks Rank #2 (Buy).
B&G FOODS CL-A (BGS): Free Stock Analysis
KELLOGG CO (K): Free Stock Analysis Report
SMITHFIELD FOOD (SFD): Free Stock Analysis
TYSON FOODS A (TSN): Free Stock Analysis
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