Hormel Foods (NYSE: HRL), the maker of the legendary Spam precooked meat product (and many other foods), was named the Stock to Study for the October issue of BetterInvesting Magazine at the Aug. 3 meeting of the magazine’s Editorial Advisory and Securities Review Committee.
The committee noted the Hormel’s ability to grow steadily over the years, though the sales and earnings expansion has been moderate overall. They also pointed out shareholder-friendly traits such as consistently raising the dividend annually and gradually reducing the number of common shares outstanding. If the stock price increases in concert with the earnings growth rate over the long term, the combination of capital appreciation and dividend, along with some lift in the price-earnings ratio, might be able to provide a doubling in investment value over the next five years.
Meanwhile, Apple (NDQ: AAPL) was named the Undervalued Stock. Apple’s stock price took a hit recently because of disappointing iPhone sales. But new products, such as the rumored iPhone 5 and mini-iPad, could provide the catalyst required to provide a 20 percent return in the next 18 months.
We’ll discuss both companies in depth in the October issue of BetterInvesting Magazine.
The BetterInvesting committee’s Stock to Study and Undervalued Stock choices are for the informational and educational uses of investors and are not intended as investment recommendations. BetterInvesting urges investors to educate themselves about the stock market so they can make informed decisions about stock purchases. For more information about investment education tools available to individual investors and investment clubs visit: www.betterinvesting.org
Full PRNewswire release here: BetterInvesting October Stock to Study and Undervalued Stock
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was borne out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit its website at www.betterinvesting.org or call toll free (877) 275-6242.
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