#2 - Kellogg Company (NYSE:K)
Kellogg (K)
P/E Ratio: 22.80
Dividend Yield: 3.33%
Kellogg Company (NYSE: K) may be best known as the cereal company, but it’s become so much more than that. Company executives said that global demand for its brands saw significant growth in March as consumers followed stay-at-home mandates and wanted to ensure they had their favorite packaged goods.
However, the company’s sales were down in the first quarter on a year-over-year (YoY) basis. But that’s to be expected because every stock was selling off in the initial days of the Covid-19 pandemic. On the other hand, the company’s operating profit posted an impressive gain, rising over 20% to $459 million. This raised the company’s diluted earnings per share (EPS) to climb 23.2% to $1.01.
It remains to be seen if the company’s pivot to healthier fare will pay off. Currently, the company has a P/E ratio that is above the sector average. And the 16 analysts that cover the company give it a price target that suggests the stock may be priced about right. However, the company rewards investors with a generous dividend yield of 3.33% with 15 years of consecutive dividend growth.
About Kellanova
Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles.
Read More - Current Price
- $81.11
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 14 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $76.35 (5.9% Downside)
