Back to top

Analyst Blog

Zacks Equity Research

Hillshire Brands Upped to Strong Buy

TSN HRL PPC

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On January 9, 2013, Zacks Investment Research upgraded Hillshire Brands Company (HSH) to a Zacks Rank #1 (Strong Buy), on the back of a strong performance in the first quarter 2013.  
 
Why the Upgrade?

Hillshire Brands Company, the new name for Sara Lee Corporation's North American business, has been witnessing rising earnings estimates, driven by solid first quarter performance after its spin off from Sara Lee. The long-term expected earnings growth rate for this stock is 8.15%.     

Hillshire Brands Company reported adjusted earnings of 51 cents per share in the first quarter of 2013, comprehensively beating the Zacks Consensus Estimate of 32 cents by 59.4%. Earnings increased 19 cents from the prior-year quarter attributable to strong top-line growth.

Adjusted net sales grew 2.0% from the prior-year quarter to $1.01 billion in the first quarter of 2013 on the back of volume growth and the strong performance of the retail segment. The company results were in line with the Zacks Consensus Estimate.

Hillshire Brands entered into an agreement to sell its Australian bakery business - Kitchens of Sara Lee Pty Ltd. The divestment of this subsidiary will enable Hillshire to concentrate on its North American retail and food businesses.

The Zacks Consensus Estimate for fiscal 2013 increased 3.9% to $1.58 per share as most of the estimates were revised higher over the last 90 days. For fiscal 2014, the Zacks Consensus Estimate increased by a penny to $1.69 per share over the same time frame

Other Stocks to Consider

Other companies with favorable Zacks Rank and worth considering include Pilgrim's Corp. (PPC - Snapshot Report) and Smithfield Foods, Inc. , both carrying a Zacks Rank  #1 (Strong Buy), and Hormel Foods Corporation (HRL - Analyst Report) and Tyson Foods Inc. (TSN - Analyst Report) both carrying a Zacks Rank #2  (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%