5 Healthy and Sustainable Food Stocks to Buy

2. General Mills, Inc. (NYSE: GIS)

Market Capitalization: $37.9 billion
Number of Hedge Fund Holders: 31

General Mills, Inc. (NYSE: GIS) is a food company with a diverse portfolio of products including a dedicated natural and organic food section. According to the company, 1 out of 10 food products in their product mix is made with healthy and organic ingredients, earning it the number 2 spot in the list of 12 healthy and sustainable food stocks to buy. General Mills, Inc. (NYSE: GIS) also signed an agreement with Tyson Foods for the acquisition of its pet treat’s segment. Headquartered in Minneapolis, the company reported an adjusted EPS of $0.82 per share showing a 6% year-over-year increase. Total revenue was reported to be $4.5 billion for Q1 of 2021 which is a year-over-year growth of 8%. Sales in the company’s organic food section experienced a surge of 7% during the quarter due to the increase in demand for home food products during the COVID-19 pandemic.

Nelson Capital Management featured General Mills, Inc. (NYSE: GIS) in its fourth quarter investor letter for 2020. This is what the investment management firm had to say about the stock:

“We purchased a position in General Mills (tkr: GIS). General Mills is a manufacturer and marketer of branded consumer foods and pet food products sold mainly through retail stores. It has greatly benefited from the “people eating at home” theme during the pandemic. Although this growth driver is likely to persist through 2021, that is not the main reason to own General Mills. The management team has done an excellent job diversifying product lines, and has successfully identified new trends and brought products forth accordingly. Some notable brands and products include Annie’s, Cheerios, Betty Crocker, Blue Buffalo, EPIC, Pillsbury and Yoplait. General Mills has maintained a healthy balance sheet, consistent with industry practice. It is relatively inexpensive with a P/E ratio of 15x (about half that of Hormel) and pays a 3.4% dividend, making it a great core holding within the consumer staples sector.”