This smaller cap play also could be a solid buy for more aggressive investors. Nomad Foods Ltd. (NYSE: NOMD) is a leading frozen foods company building a global portfolio of best-in-class food companies and brands within the frozen category and across the broader food sector.
The company’s portfolio of iconic brands, which includes Birds Eye, Findus, Iglo, Aunt Bessie’s and Goodfella’s, has been a part of consumers’ meals for generations, standing for great-tasting food that is convenient, high quality and nutritious.
Last week Nomad announced a $300 million stock repurchase program, which is a huge positive for investors now.
The Jefferies price objective was actually raised to $24 from $22. The posted consensus price target is $21.65. The shares closed Monday’s volatile trading session at $17.20, down 2.49%.
This company offers a wide range of products and a somewhat large capitalization profile. Post Holdings Inc. (NYSE: POST) is a consumer packaged goods holding company that engages in operating of center-of-the-store, refrigerated, food-service, food ingredients, active nutrition and private brand food categories.
Post’s Consumer Brands segment manufactures, markets, and sells branded and private label ready-to-eat cereal and hot cereal products. The Weetabix segment focuses on the marketing and distribution of branded and private label ready-to-eat cereal products.
The Refrigerated Food segment produces and distributes egg products, sausage, side dishes, cheese and other refrigerated products to retail and food-service customers. While the active Nutrition segment markets and distributes ready-to-drink beverages, bars, powders and other nutritional supplements, the Food-Service segment includes egg and potato products.
Jefferies lowered its $125 price target to $112, which compares to the $120.55 consensus target. The last trade on Monday was reported at $81.49, down over 6%.
Simply Good Foods
This is another smaller cap, off-the-radar play that has been crushed and could rebound fast on strong sales. Simply Good Foods Co. (NASDAQ: SMPL) engages in the development, marketing and sale of nutritional food and snacking products. Its products include nutrition bars, ready-to-drink shakes, snacks, confectionery and frozen meals under the Atkins, SimplyProtein, Atkins Harvest Trail and Atkins Endulge brands.
Insiders continued to buy shares of the company recently, with a director adding 88,500 shares back in late February. Despite the current trauma, that bodes well for investors.
Jefferies lowered its price target to $23 from $27, well below the posted consensus of $30.25. Shares closed Monday at $15.84, down just over 6%.
As we have noted since the start of the sell-off, the only kind of buying that should be done now is nibbling with small purchases. It may take months for the bottom to be put in, which we discussed in detail on Monday.
Like all panics and market sell-offs, this too shall pass. It makes sense to be very careful now, though. Yet, you don’t need to be a Wall Street analyst to know why these stocks make sense short term. Just go to the grocery store.