) reached a 52-week high of $62.00 on Wednesday, Mar 13, 2013, as
it is gaining momentum following solid fourth-quarter results
announced last month. The closing price of the cereal maker on
Mar 13, 2013, was the same, representing a robust 1-year return
of about 21.0% and year-to-date return of about 9.7%. Average
volume of shares traded over the last 3 months stands at
Moreover, this Zacks Rank #2 (Buy) company has delivered
positive earnings surprises in all the past 4 quarters. The
long-term expected earnings growth rate for this stock is
Solid Fourth-Quarter Performance
Kellogg reported impressive fourth-quarter results beating the
Zacks Consensus Estimate for both revenue and earnings. Moreover,
the company reaffirmed its 2013 outlook provided previously.
Kellogg's fourth-quarter 2012 earnings of 67 cents per share
beat the Zacks Consensus Estimate by 3.1% and prior-year quarter
earnings by 4.7%, driven by robust organic sales growth
performance, which made up for the operating profit decline.
Revenue rose 5.3% organically, driven by improving volume trends
in North America, significant growth in Latin America, some
improvement in Europe and strong performance of its Pringles
business, which was acquired from consumer giant,
The Procter & Gamble Company
) in June last year.
Estimates mostly moved upward following the fourth-quarter
beat. The Zacks Consensus Estimate for 2013 rose almost 5% to
$3.82, while that for 2014 increased almost 3.0% to $4.12 in the
past 60 days.
Overall, we are optimistic about Kellogg's solid brand
positioning, its geographic diversity and cost-saving efforts,
especially its supply-chain initiatives. Moreover, we are
encouraged by the growth potential, diversification and
international presence that the Pringles deal provides.
Other Stocks to Consider
Other stocks in the food industry that are currently
performing well and have a bright outlook include
J&J Snack Foods Corp.
Flowers Foods, Inc.
) - Zacks Rank #1 (Strong Buy) and
ConAgra Foods, Inc.
(CAG) - Zacks Rank #2 (Buy).
FLOWERS FOODS (FLO): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
KELLOGG CO (K): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis
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