Zacks Investment Ideas Feature Highlights Del Monte, Hormel, J&J Snack Foods and Treehouse

CHICAGO--([ BUSINESS WIRE ])--Today, Zacks Investment Ideas feature highlights features Del Monte Foods (NYSE: [ DLM ]), Hormel Foods (NYSE: [ HRL ]), J&J Snack Foods (Nasdaq: [ JJSF ]) and Treehouse Foods (NYSE: [ THS ]).

Play Defense with 4 Food Stocks

Below are four food stocks that we think are in a position to gain share and provide steady revenue and earnings, even if industry conditions remain difficult and the economic backdrop remains choppy.

Del Monte Foods (NYSE: [ DLM ])

Del Monte Foods produces, distributes, and markets branded food and pet products for the retail market in the U.S. Its Consumer Products segment sells branded and private label shelf-stable products, including fruit, vegetable and tuna products. The Pet Products segment offers branded and private label dry and wet pet food, as well as pet snacks.

The companya�s plan to boost sales and earnings growth is on track. Del Montea�s reorganization efforts included a shift in its sales mix to higher growth and higher profit margin products: snacks and pet food. Those efforts also produced impressive productivity gains. In addition, the company showed investors that it will be returning value to shareholders. It recently announced that it was going to increase its dividend by 80% and buy back up to $350 million of its shares over the next three years.

For its fiscal fourth quarter, Del Monte reported $0.31 per share, topping the Zacks Consensus by 9 cents, or 40.9%. In the last three quarters, Del Monte has beaten the Zacks Consensus by an average of 58.1%.

In the last month, the Zacks Consensus Estimate for fiscal 2011 is up 10 cents, or 7.6%, to $1.41, and the Zacks Consensus for fiscal 20121 is higher by 9 cents, or 6.3%, to $1.53.

Del Monte is a Zacks #1 Rank stock with a dividend yield of 1.4%. It is trading at 10.6x fiscal 2011 consensus EPS estimates and 9.8x fiscal 2012 consensus estimates.

Hormel Foods (NYSE: [ HRL ])

Hormel Foods produces and markets various meat and food products in the U.S. and Internationally. It offers meat products, including fresh, frozen, cured, smoked, cooked and canned meat. The company provides perishable meat products, which include fresh meats, sausages, hams, wieners and bacon; and shelf-stable products such as lunch meats, chili, hash and stews.

The company has a balanced portfolio of grocery products, refrigerated foods and Jennie-O Turkey. By not relying on one product line, the company is able to better manage its business. Hormela�s refrigerated foods and Jennie-O Turkey sales are performing well, with Jennie-Oa�s operating profits climbing 93% year-over-year. Growth in those segments more than offsets Hormela�s grocery business, where its Spam and Bacon Bits products are dealing with higher input costs.

Hormel reported fiscal second-quarter EPS of $0.67, beating the Zacks Consensus Estimate by 6 cents, or 9.8%. In the last five quarters, the company has beaten the Zacks Consensus by an average of 14.3%.

In the last two months, the Zacks Consensus Estimate for 2010 has climbed 8 cents, or 2.9%, to $2.82. The Zacks Consensus Estimate for 2011 has increased 9 cents, or 3.1%, to $2.98.

Hormel is a Zacks #2 Rank stock with a dividend yield of 2.0%. The stock trades at 14.8x fiscal 2010 consensus EPS estimates and 14.1x fiscal 2011 consensus EPS estimates.

J&J Snack Foods (Nasdaq: [ JJSF ])

J&J Snack Foods manufactures nutritional snack foods and distributes frozen beverages to food service companies and retail supermarkets in North America. The company primarily offers soft pretzels, frozen juice treats, desserts, churros and baked goods to snack bars and food stands.

JJSFa�s frozen carbonated beverages (FCB) and soft pretzels are driving the companya�s solid growth. FCB is a high margin business that is experiencing solid momentum. Meanwhile, soft pretzels, which suffered in recent quarters because of price increases, appears to have stabilized, and there has been an uptick in its sales to malls, theme parks and sporting events.

J&J Snack Foodsa� fiscal Q2 earnings per share beat the Zacks Consensus by 2 cents, or 4.4%. In the last five quarters, JJSF has beaten consensus estimates by an average of 25.6%. In the last two months, the Zacks Consensus Estimate of fiscal years 2010 and 2011 have remained essentially unchanged.

J&J Snack Foods is a Zacks #2 Rank stock with a dividend yield of 1.0%. JJSF shares trade at 17.1x fiscal 2010 consensus EPS estimates and 15.8x fiscal 2011 consensus EPS estimates.

Treehouse Foods (NYSE: [ THS ])

Treehouse Foods operates as a private-label food manufacturer serving the retail grocery and foodservice channels in the U.S. and Canada. The companya�s products include non-dairy powdered creamer, soups, broths, infant feeding products, salad dressings and jams. Its brands include Peter Piper, Hoffman House and Naturea�s Goodness.

Private-label is a large but fragmented industry. It generates over $60 billion in annual sales, and over 80% of the companies in the business are small, privately-held firms. This gives Treehouse, which has been a consolidator in this space, the opportunity to produce solid and consistent earnings growth for the next several years. In the last five years, THS has acquired four companies and plans to continue its growth-by-acquisition strategy in the future.

In Q1, Treehouse earned $0.59 per share, ahead of the Zacks Consensus of $0.51. In the last five quarters, Treehouse has beaten the Zacks Consensus by an average of 18.9%.

In the last two months, the Zacks Consensus Estimate for 2010 is up 3 cents to $2.72, and the 2011 Zacks Consensus is up 3 cents to $3.06.

Treehouse Foods is a Zacks #2 Rank stock that trades at 17.2x 2010 consensus EPS estimates and 15.3x 2011 consensus EPS estimates.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms. It monitors more than 200,000 earnings estimates, looking for changes.

Then when changes are discovered, theya�re applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock picking system; the Zacks Rank, continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter Profit from the Pros. In short, ita�s your steady flow of profitable ideas GUARANTEED to be worth your time. Get your free subscription to Profit from the Pros at: [ http://at.zacks.com/?id=7298 ]

Join us on Facebook: [ http://www.facebook.com/home.php#pages/Zacks-Investment-Research/57553657748?ref=ts ]

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

N@N

Zacks Investment Ideas Feature Highlights Del Monte, Hormel, J&J Snack Foods and Treehouse