|SoTM Bull's Eye Report - Today's Most Compelling Buy |
Monday, August 5, 2013
At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.
| Post Holdings Inc || POST || Packaged Foods & Meats || 8.8 || +32.57% || $44.45 |
Why We Like The Stock:
Post Holdings Inc (POST) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Packaged Foods & Meats stocks have been exhibiting considerable strength lately, as evidenced in stocks like Snyder's-Lance Inc (LNCE), Dean Foods Co (DF), B&G Foods Inc (BGS), Sanderson Farms Inc (SAFM), and POST. Of this group, we think POST is the most attrative buy here due to its more modest short-term technical set-up. It still retains the strong intermediate- and long-term uptrend, but presents a more reasonable entry-point than its counterparts. POST has been making higher highs and higer lows since September of last year, a trend that is still ongoing. Currently, the stock has pulled back from its $49 highs in mid-July to just below $47, hovering comfortably above its 50-day moving average. We like POST here for a run back above $49 and beyond.
|We Would Be Buyers: |
At the current price (~$46.93), or on a pullback to the 50-day moving average ($45.45).
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|Company Profile: |
Post Holdings, Inc., is a holding company. The Company is a manufacturer, marketer and distributor of branded ready-to-eat cereals in the United States and Canada. The Company’s portfolio of brands includes Honey Bunches of Oats, Pebbles, Great Grains, Grape-Nuts, Shredded Wheat, Raisin Bran, Golden Crisp, Alpha-Bits and Honeycomb. It markets and sells ready-to-eat cereal products in three different categories: sweetened, balanced and unsweetened. Its sweetened products include Pebbles, Honeycomb, Golden Crisp, Alpha-Bits and Waffle Crisp. Its balanced products include Honey Bunches of Oats, Post Selects, Great Grains and Shreddies. The Company’s unsweetened products include Post Shredded Wheat, Post Raisin Bran and Grape-Nuts. In May 2013, Post Holdings Inc completed the previously announced acquisition of the branded and private label cereal, granola and snacks business of Hearthside Food Solutions, a portfolio company of Wind Point Partners.
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.
At the time of publication the editor and affiliated companies own the following positions: None
Note: Positions may be bought or sold while this publication is in circulation without notice.
Post Holdings Inc - Last 3 Months
Post Holdings Inc - Last 12 Months
Post Holdings Inc - Last 5 Years
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