Mondelez International Inc (MDLZ), Pinnacle Foods Inc (PF) & The WhiteWave Foods Co (WWAV): Food-Producer Stocks for Your Portfolio

My initial outlook is that share earnings will continue to climb at a nice rate, while these products, such as almond milk and organic dairy offerings, become more mainstream.

Thus, the long-term prospects for The WhiteWave Foods Co (NYSE:WWAV) are solid. Its shares, near their all-time high at a forward P/E of 23.6, are a worthwhile growth investment. Cash will probably be utilized for expansion measures, as there is no plan to pay a dividend.

Canadian baker an investor favorite

Canada Bread operates two segments:

1. Fresh bakery comprises the bulk of revenue, at 68% of the June-quarter total. It produces a variety of bread-related products, under the brand names, Dempster’s and Olivieri, along with regional brands.

2. Frozen bakery produces par-baked bakery products, specialty and artisan breads. Brand names include Tenderflake and New York Bakery.

Canada Bread has been producing steady revenue and income. June-quarter share earnings were $1.07 versus $1.06 in the prior year.

I believe the company will eventually thrive is through the investment of its cash and available liquidity. Specifically, it had, as of June 30, $145 million in cash and only minimal long-term debt.

Canada Bread’s results may well gain regardless of where it chooses to expand. It is a worthwhile selection, at a forward P/E of 16.7, for long-term total return. It does pay a dividend yield of about 3.4%.

Where to Invest

Many long-term focused investors might well be enticed by the recently created shares of Mondelez International Inc (NASDAQ:MDLZ) and Pinnacle Foods Inc (NYSE:PF). Their strong, well-known product lines ought to support solid results over the years, and their management teams seem to be taking the correct initiatives.

Elsewhere, if you are looking to capitalize on an industry growth category, The WhiteWave Foods Co (NYSE:WWAV) shares may be a favorable choice for your portfolio. Finally, as for Canada Bread, there is opportunity for better-than-anticipated profit upside, given the company’s ability to expand.

Damon is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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