Despite being hit hard by the coronavirus pandemic, the U.S. stock markets delivered solid returns last year. But the clear disconnect between the economy and the stock market has raised concerns about a stock market bubble. In fact, many companies are currently trading at sky-high valuations absent adequate fundamental strength…
As the market has grown wary of speculative investments, value stocks have gained momentum over the past few months. This is evident in the iShares Russell 1000 Value ETF’s (IWD) 15% gains over this period versus iShares Russell 1000 Growth ETF’s (IWF) 5.6% returns.
The Kraft Heinz Company (KHC – Get Rating) and Ally Financial Inc. (ALLY – Get Rating), which operate in the food and financial services industries, respectively, have been able to survive pandemic-induced disruptions with resilience and strong corporate management. These stocks are currently trading at discounts to their peers and are well-positioned we believe to gain with the economic recovery.
The Kraft Heinz Company (KHC – Get Rating)
KHC is a leading food and beverage company with a diverse portfolio of iconic and emerging brands. The company manufactures and markets food and beverage products worldwide.
KHC’s trailing-12-month non-GAAP P/E of 11.43x is 43.1% lower than the industry average of 20.08x. In terms of trailing-12-month Price/Cash Flow, the stock is currently trading at 8.01x, 36.9% lower than the industry average of 12.68x.
HEINZ, a KHC brand, launched a touchless automatic dispenser in October to restore consumer confidence in dining on premise. The device uses a motion sensor technology and offers a complete touchless serving experience designed to eliminate shared touch points. This innovative technology is…
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