Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, January 25, 2013

Article Excerpt

CONAGRA FOODS INC., $32.33, New York symbol CAG, is our “Stock of the Year” for 2013. ConAgra began processing grain at just four mills in Nebraska in 1919. Over the decades, it grew into one of North America’s leading food companies. In the past few years, it has sold off its fresh food operations to focus solely on its more profitable packaged food businesses. The company recently announced a major acquisition that will give it a larger share of the fast-growing private label food business. While private label foods now account for 18% of packaged food sales in the U.S., most of them just aren’t that good. That provides an opportunity for ConAgra, since it has the expertise to make branded stuff, and it can apply it to private labels. ConAgra is a “heads-you-win, tails-you-break-even” situation. We think its new mix of branded and private label products will pay off better than the old one of branded and fresh meats and animal feed…