Food Processing Sector: Great Place to Hide During Correction

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 |  Includes: ADM, DLM, FLO, HOGS, JJSF, K, LWAY, MLP, PEET, SAFM, SNAK, UNFI, YUII
by: Thomas Smicklas

Many investors, including myself, feel that the market is due for a correction. Some predict with the increased national debt, weaker dollar and a Congress unwilling to grasp both, even worse things may occur that will effect our standard of living now and, especially, in the future.

One sector that may withstand a negative outlook are food processors. I used a computer screen to isolate those with anticipated growth of 10-25% next year. All appear stable and quite a few are international in scope. I must admit to having several obscure companies grace my computer screen. I did investigate all of them to a certain degree and without exception they look quite acceptable for investment consideration.

You may decide to explore the companies on this roster for further study and, perhaps, inclusion within the defensive elements of your portfolio. I am.

  1. Lifeway Foods (NASDAQ:LWAY) $13.77/ $231m market cap
  2. Inventure Group (NASDAQ:SNAK) $2.87/$53m market cap
  3. Maui Land and Pineapple Company (NYSE:MLP) $6.50/ $53m market cap
  4. Zhongpin, Inc. (NASDAQ:HOGS) $11.37/$331m market cap
  5. J&J Snack Foods Corp. (NASDAQ:JJSF) $43.81/$809m market cap
  6. Peet's Coffee and Tea (NASDAQ:PEET) $27.27/$354m market cap
  7. United Natural Foods, Inc. (NASDAQ:UNFI) $26.61/$1.15b market cap
  8. Yuhe International, Inc. (OTC:YUII) $5.40/$85m market cap
  9. Flowers Foods, Inc. (NYSE:FLO) $23.57/$2.2b market cap
  10. Del Monte Foods Company (DLM) $10.36/$2.1b market cap
  11. Kellogg Comnpany (NYSE:K) $47.35/$18.2b market cap
  12. Archer Daniels Midland (NYSE:ADM) $28.67/$18b market cap
  13. Sanderson Farms (NASDAQ:SAFM) $39.71/$808m market cap


Food processing is not a sexy sector, but it is a great place to hide as others lose their lunch during the next downturn.


Full Disclosure: The author does not presently hold a position in the above stocks.