Green Mountain Coffee Roasters Inc. (GMCR), Gilead Sciences, Inc. (GILD): Investing in Quality Stocks — Made Easy

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Flowers Foods, Inc. (NYSE:FLO) surged 76%, enjoying accelerating growth rates for revenue and earnings. The stock yields 1.4%, and its dividend has been steadily growing in recent years. With a forward P/E ratio near 21, it doesn’t appear to be a screaming buy, and it has a debt load to consider, as well. It has been making some savvy and powerful acquisitions, though, such as Sara Lee and Earthgrains brands in California, Wonder Bread, and a high-profile $355 million purchase of some Hostess brands, such as Wonder Bread (but not Twinkies). As analyst Stephen Simpson has noted, the company’s scale and efficiency are improving. In Flowers Food’s second quarter, volume grew 22%, revenue jumped 32%, and net income surged 64%.

Amgen, Inc. (NASDAQ:AMGN), the biotech giant, jumped 29%, and yields 1.8%. Among its many offerings is arthritis drug Enbrel, which is the third-highest-selling drug, generating $4 billion in revenue in just the first half of 2013. (Amgen shares those gains with partner Pfizer Inc. (NYSE:PFE).) The company has a bunch of promising “biosimilar” drugs, but along with its peers, seeks more clarity about them from the FDA. Bulls see promise in its pipeline, and with its forward P/E ratio near 12.5, many think the stock is a bargain these days. Amgen has reportedly been looking into buying cancer-specialist Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX).

The big picture
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The article Investing in Quality Stocks — Made Easy originally appeared on Fool.com.

Longtime Fool contributor Selena Maranjianwhom you can follow on Twitter, owns shares of Gilead Sciences. The Motley Fool recommends Flowers Foods, Gilead Sciences, and Green Mountain Coffee Roasters. 

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