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On Apr 30, The Kraft Heinz Company (KHC - Free Report) reported first-quarter sales of $6.16 billion, fueled by increased consumer demand on fears of coronavirus spreading further. The company said that about 6% to 7% of sales growth was due to stocking up on pantry staples. Also, Kellogg Company (K - Free Report) said that its cereal sales rose 2.7% in the quarter as more people preferred eating breakfast at home to avoid contact.
With fatalities crossing 63,000 and a cure yet to be found for coronavirus, cities have been forced to go under lockdown. Although some states have started reopening, health authorities have warned that it might lead to a second wave of pandemic. The resultant panic is driving people to stock up on essential goods and food items.
Kraft Heinz Scores on Coronavirus Stockpiling
Retailers, consumer durables and food brands announcing their quarterly results have warned of a sales decline in the next reporting cycle. However, most of these companies so far have reported higher sales this season.
Kraft Heinz on Thursday reported revenues of $6.16 billion, up 3.3% from a year ago. Kraft Heinz said its revenues benefited from focus on consumer food items due to the coronavirus pandemic, which resulted in a buying spree around the country. The company also said pricing in the quarter increased 2.4%, driven by a combination of higher list prices and price increases to offset commodity-cost inflation in dairy.
Eating at Home Spurs Sales
On Apr 30, Kellogg reported stronger-than-expected first-quarter earnings amid the coronavirus pandemic, tying sales growth in part to consumers stocking up. The company said its Eggo waffle sales soared 45% in March as the coronavirus pandemic forced more consumers to eat breakfast at home.
Earlier this week, PepsiCo, Inc. (PEP - Free Report) said that surging demand for Lays and Doritos helped its business in the March quarter. The beverage giant said it witnessed an increase in consumers making breakfast and snacking, leading to a spike in sales of snacks, oatmeal and Aunt Jemima pancakes late in the quarter.
Also, Nestle SA (NSRGY - Free Report) last week reported its best quarterly sales growth in nearly five years as consumers stockpiled such items as Purina pet food, Nescafe coffee and frozen meals in preparation for coronavirus lockdowns. In North America, Purina Pet care sales rose by a double-digit percentage while Nescafe and Coffee Mate drinks raked in high single-digit increases.
Our Choices
The current stockpiling is boosting food and consumer staples and in turn helping several retailers. Given the situation, we have shortlisted five food manufacturing companies that are sure to benefit from soaring demand.
The Hain Celestial Group, Inc. (HAIN - Free Report) produces, distributes, markets and sells various natural and organic foods as well as personal care products. The company offers groceries, non-dairy beverages and frozen desserts, flour and baking mixes, cereals, condiments, cooking oils, and infant and toddler food.
The company’s expected earnings growth rate for the current year is 10.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the past 60 days. Hain Celestialsports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
B&G Foods, Inc. (BGS - Free Report) manufactures, sells and distributes high quality, shelf stable, frozen food and household products across the United States, Canada and Puerto Rico.
The company’s expected earnings growth rate for the current year is 1.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. B&G Foods carries a Zacks Rank #1.
Conagra Brands Inc. (CAG - Free Report) is one of the leading branded food companies of North America. The company offers premium edible products, with refined focus on innovation.
Congra Brands’ expected earnings growth rate for the current year is 10%. The Zacks Consensus Estimate for current-year earnings has improved 7.8% over the past 60 days. The company carries a Zacks Rank #2 (Buy).
Campbell Soup Company (CPB - Free Report) together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products.
The company’s expected earnings growth rate for the current year is 22.6%. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the past 60 days. Campbell Soup carries a Zacks Rank #2.
United Natural Foods, Inc. (UNFI - Free Report) is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada.
The company’s Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. The company’s shares have gained 15.9% in the past one month. United Natural Foods carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Stockpiling Boosts Retail Sales Amid Coronavirus: 5 Picks
On Apr 30, The Kraft Heinz Company (KHC - Free Report) reported first-quarter sales of $6.16 billion, fueled by increased consumer demand on fears of coronavirus spreading further. The company said that about 6% to 7% of sales growth was due to stocking up on pantry staples. Also, Kellogg Company (K - Free Report) said that its cereal sales rose 2.7% in the quarter as more people preferred eating breakfast at home to avoid contact.
With fatalities crossing 63,000 and a cure yet to be found for coronavirus, cities have been forced to go under lockdown. Although some states have started reopening, health authorities have warned that it might lead to a second wave of pandemic. The resultant panic is driving people to stock up on essential goods and food items.
Kraft Heinz Scores on Coronavirus Stockpiling
Retailers, consumer durables and food brands announcing their quarterly results have warned of a sales decline in the next reporting cycle. However, most of these companies so far have reported higher sales this season.
Kraft Heinz on Thursday reported revenues of $6.16 billion, up 3.3% from a year ago. Kraft Heinz said its revenues benefited from focus on consumer food items due to the coronavirus pandemic, which resulted in a buying spree around the country. The company also said pricing in the quarter increased 2.4%, driven by a combination of higher list prices and price increases to offset commodity-cost inflation in dairy.
Eating at Home Spurs Sales
On Apr 30, Kellogg reported stronger-than-expected first-quarter earnings amid the coronavirus pandemic, tying sales growth in part to consumers stocking up. The company said its Eggo waffle sales soared 45% in March as the coronavirus pandemic forced more consumers to eat breakfast at home.
Earlier this week, PepsiCo, Inc. (PEP - Free Report) said that surging demand for Lays and Doritos helped its business in the March quarter. The beverage giant said it witnessed an increase in consumers making breakfast and snacking, leading to a spike in sales of snacks, oatmeal and Aunt Jemima pancakes late in the quarter.
Also, Nestle SA (NSRGY - Free Report) last week reported its best quarterly sales growth in nearly five years as consumers stockpiled such items as Purina pet food, Nescafe coffee and frozen meals in preparation for coronavirus lockdowns. In North America, Purina Pet care sales rose by a double-digit percentage while Nescafe and Coffee Mate drinks raked in high single-digit increases.
Our Choices
The current stockpiling is boosting food and consumer staples and in turn helping several retailers. Given the situation, we have shortlisted five food manufacturing companies that are sure to benefit from soaring demand.
The Hain Celestial Group, Inc. (HAIN - Free Report) produces, distributes, markets and sells various natural and organic foods as well as personal care products. The company offers groceries, non-dairy beverages and frozen desserts, flour and baking mixes, cereals, condiments, cooking oils, and infant and toddler food.
The company’s expected earnings growth rate for the current year is 10.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the past 60 days. Hain Celestialsports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
B&G Foods, Inc. (BGS - Free Report) manufactures, sells and distributes high quality, shelf stable, frozen food and household products across the United States, Canada and Puerto Rico.
The company’s expected earnings growth rate for the current year is 1.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. B&G Foods carries a Zacks Rank #1.
Conagra Brands Inc. (CAG - Free Report) is one of the leading branded food companies of North America. The company offers premium edible products, with refined focus on innovation.
Congra Brands’ expected earnings growth rate for the current year is 10%. The Zacks Consensus Estimate for current-year earnings has improved 7.8% over the past 60 days. The company carries a Zacks Rank #2 (Buy).
Campbell Soup Company (CPB - Free Report) together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products.
The company’s expected earnings growth rate for the current year is 22.6%. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the past 60 days. Campbell Soup carries a Zacks Rank #2.
United Natural Foods, Inc. (UNFI - Free Report) is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada.
The company’s Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. The company’s shares have gained 15.9% in the past one month. United Natural Foods carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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