With the market on an epic winning streak, breaking on through to all-time highs nearly every day, you’d think that I’d be on here touting some high-flying tech stock or a revolutionary biotech company. Well, I’m sure you’ve heard enough of that from other guys. So today I’m digging down into my bag of tricks to find a stock that’s in a much more boring, stable industry. That’s right folks, with the market at all-time highs I’m taking a food company as my Bull of the Day.
Nomad Foods (NOMD - Free Report) manufactures and distributes frozen foods primarily in the United Kingdom, Italy, Germany, Sweden, France, and Norway. The company’s frozen food products include fish, vegetables, poultry products, and ready meals. It sells its products directly or through distribution arrangements to supermarkets and large food retail chains under the Birdseye, Findus, and Iglo brands. The company also sells its products in Austria, Belgium, Spain, the Netherlands, Finland, Greece, Hungary, Ireland, Portugal, Switzerland, and Denmark. Nomad Foods Limited is based in Feltham, the United Kingdom.
The reason for the Zacks Rank #1 (Strong Buy) on this one is the recent earnings estimate revisions to the upside for next quarter, the current year and next year. Over the last thirty days, analysts have come out and jacked up their numbers for these three time periods. The bullish sentiment has pushed up our Zacks Consensus Estimate for next quarter from 24 cents to 35 cents. That’s translated to the current year’s numbers going up from 99 cents to $1.13 and next year from $1.10 to $1.29.
With these estimates pushing up in a positive direction, shares have maintained an elevated status as well. After bottoming out near $9 in December of last year, Nomad shares rallied sharply to $15.50 before stalling out. Over the last few months the stock has been in a sort of consolidation phase from $13.50 to that level. However, upon further review, you can see that a wedge has been developing with the lows getting progressively higher. I think that this series of higher lows could be setting up another huge move to new highs.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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