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Zacks #1 Stocks on the Move 06/19/2013

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Treehouse Foods, Inc.

by Michael Vodicka

December 16, 2011 | Comments : 0 Recommended this article: (0)
THS

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Treehouse Foods, Inc. (THS - Snapshot Report) has traded strong in the choppy market of the last few months, recently hitting a new all-time high on strong Q3 results from November. That and a bullish growth projection have provided plenty of momentum for this Zacks #1 Rank stock.

Company Description

TreeHouse Foods, Inc. operates as a food manufacturing company servicing retail grocery and food service distribution channels in the United States and Canada. The company was founded in 1862 and has a market cap of $2.3 billion.

Food stocks are viewed as benefiting from less elastic demand during market and economic volatility. That and strong Q3 results from November helped push THS to a fresh all-time high.

Third-Quarter Results

Revenue for the period was up 14% from last year to $528 million. Earnings also came in strong at 85 cents, 4% ahead of the Zacks Consensus Estimate.

The company's North American Retail Grocery segment led the way, with sales up an impressive 16% from last year to $370 million on growth in private label items. Its Industrial and Export segment saw a 28% increase in sales.

Estimates

We saw a little movement in estimates off the good quarter, with the current year adding 2 cents to $2.94 and the next-year estimate adding 3 cents to $3.42, a bullish 16% growth projection.

Valuation

With a PEG ratio 1.44, THS trades at a premium to the benchmark of 1 for value.

5-Year Chart

On the chart, the long-term trend is bullish, with shares recently hitting a new all-time high on another solid quarter. Take a look below.

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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.

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