Below is a chart and brief excerpt from today's Early Look written by Consumables analyst Daniel Biolsi.
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As nice as it would be if stock charts could resemble the slope of Fujisan, dips provide buying opportunities. We see Nomad Foods at one of those opportunities. It is a Best Idea Long in our Consumer Staples position monitor. Nomad Foods is the largest frozen food company in Europe, but shares have been weak recently over pandemic comparison concerns. The company’s growth formula of LSD% organic revenue growth, margin expansion, balance sheet enhancement, and tuck-in acquisitions driving LDD-mid-teens EPS growth are trading at 13.5x the current run rate of EPS. It might not be the right quad for outperformance at the moment, but it is worth keeping in mind. That valuation offers a mountain sized margin of safety with time on your side. To learn more about my team's investing research product Consumables Pro click here. |
