Looking for some good organic growth in your stock portfolio? You might want to take a look at healthy foods, and some of the companies that are spear-heading the health revolution here in the U.S. The healthy food movement is here, and it’s growing by leaps and bounds. Many consumers want to know what is in their food, where the food is grown, who grows it, and what practices they employ to create a quality product. Consumers are being educated about organic food, non-gmo foods, gluten-free, plant-based diets, and low glycemic foods. All of this consumer knowledge is creating a food revolution.
The demand for organic foods is so high that Wal-Mart– yes, I said it– Wal-Mart, is jumping on the bandwagon to compete with stores like Whole Foods, Trader Joes, and Natural Grocers. Wal-Mart is introducing organic products in its stores this year to appeal to consumers that want those products at a supposed 25% decrease in price. But, we don’t want to compare grocery stores. We want to look at several companies that are contributors to the organic growth of this food revolution and identify some of those companies that can be good investment plays.
Boulder Brands (BDBD) is a natural foods company which represents several major brands including: SmartBalance, Udi’s, Glutino, Earth Balance, Evol, and Level Life. Although the company missed their estimates for Q1 2014 in margins, the natural foods segment (Udi’s, Glutino, and Evol) is still performing very well, and sales have increased. In January, the Evol brand introduced two new lines to its healthy frozen food category. In March, Smart Balance announced that it would transition to a non-gmo products with labeling accordingly, appealing to their consumers. As of today, the new Smart Balance products are available nationwide. Udi’s and Glutino continue to dominate the gluten free bread category in many grocery stores. BDBD continues to deliver health-conscious products to its health-conscious consumers.
At a glance, its 52 low was $8.82 per share and its high was $18.46 per share, with current trading just above $13 per share. BDBD has a market capitalization just over $800 million, an average volume of 682,906 shares, and a PE of 121.18. SunTrust just upgraded BDBD from “neutral” to “Buy”, and if the stock continues at $13 or below, this stock is worth exploring.
Where Food Comes From (OTC: WFCF) is a third-party auditor of companies that produce and process foods. The company has a verification and certification process that involves on-site auditing procedures and observations. Once a company has completed certification with WFCF, the Where Food Comes From seal can be added to the company’s label, providing consumers with “knowledge, transparency, and peace of mind” that the production of the food product has been validated and substantiated. This past Tuesday they announced a partnership with Heinen’s Grocery store as the store looks to inform its customers on information about how its private-label meat products are raised and produced.
The company announced a Q1 2014 revenue increase of 34% compared to Q1 last year. The verification services line of business continues to grow as more companies utilize these services to strategically position their products.
Where Food Comes From has a market capitalization of $45.38 Million and an average volume of 14,926. The 52-week low for WFCF is .90 and the high is $3.40. It is currently trading at the $2 mark, the average trading price since October 2013. The company has a good financial outlook. With the ability to expand its verification services to family farms and producers as well as major chains, this company should be poised for growth in the coming years.
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