11 Best Buy-the-Dip Stocks to Buy Now

8. Flowers Foods, Inc. (NYSE:FLO)

Closing Price as on April 28: $17.66

52-week Low: $17.33

Number of Hedge Fund Holders: 30

Flowers Foods, Inc. (NYSE:FLO) is engaged in producing and marketing packaged bakery food products. The company’s strong execution of portfolio strategy and cost savings initiatives fueled its Q4 and FY 2024 adjusted EPS growth amidst the difficult economic environment. In Q4 2024, the company’s diluted EPS rose $0.03 to $0.20, while adjusted diluted EPS went up by $0.02 to $0.22. The company’s investments in innovation and in-store operations resulted in strong market share performance from the leading brands. Improved pricing and the addition of profitable new accounts in the away-from-home business supported Flowers Foods, Inc. (NYSE:FLO)’s margins. Furthermore, a positive mix shift towards higher-margin products in the branded retail also aided its margins.

In FY 2024, Flowers Foods, Inc. (NYSE:FLO)’s net income increased 101% to $248.1 million (demonstrating 4.9% of sales), a 250-basis-point increase, mainly because of increased operating income due to lower legal settlements and related costs, and moderating ingredient costs. However, to a lesser extent, the benefits of optimization and cost savings initiatives also supported the increase. For the 53-week fiscal 2025, Flowers Foods, Inc. (NYSE:FLO) expects net sales of ~$5.403 billion to $5.487 billion, demonstrating 5.9% – 7.5% growth as compared to the prior year.

Palm Valley Capital Management, an investment management firm, released its Q1 2025 investor letter. Here is what the fund said:

“We started four new positions in the first quarter: Forrester Research (ticker: FORR), Monro (ticker: MNRO), Reynolds Consumer Products (ticker: REYN), and Flowers Foods, Inc. (NYSE:FLO). Each of these is a relatively small weighting in the Fund. Flowers Foods is the second largest producer of bread and bakery foods in the United States. Founded in 1919, the company’s brands include Nature’s Own, Dave’s Killer Bread, and Wonder. Flowers Foods has a long history of generating consistent sales and profit growth. As the company integrates its recent Simple Mills acquisition, earnings are expected to be flat in 2025. Nevertheless, we believe Flowers will continue to generate abundant free cash flow, sufficiently funding its dividend (5.0% current yield) and its plan to reduce debt. With Flower’s stock trading at a five-year low, its valuation has improved considerably.”