There are good companies and good stocks and they don't always (or even necessarily often) go together. While the pressures affecting HJ Heinz (NYSE:HNZ) today do not diminish it as a quality food company over the long-term, they do create near-term issues of value and momentum. Unless and until Heinz can prove that it can better surmount cost inflation, these shares remain a stretch on valuation.
Third Quarter Results Not as Good as They Seem
Although Heinz beat on the top and bottom lines, the quality of the latter was not very good. Revenue rose more than 7% this quarter and organic growth (volume + price) of more than 4% was legitimately good in the present environment. The top brands did even better (up 6% organically), while emerging markets continue to be a major growth driver.
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http://stocks.investopedia.com/stock-analysis/2012/Costs-Keep-The-Squeeze-On-Heinz-HNZ-CAG-KFT-PFE0222.aspx
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