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A Closer Look At Food: Food Stocks With Rising Inventory Turnover Ratios

|Includes: ConAgra Brands, Inc. (CAG), CENT, GIS, HAIN, KHC, OFI, SNAK

Screen Criteria:

All of the Food companies mentioned below have reported improving inventory turnover ratios. (Link to original post)

Ranking of This List:

Based on performance data over the last month, this list is currently ranked 140 out of 284 lists tracked by Contextuall.com. In other words, the company characteristics described below have outperformed 50.70% of lists in Contextuall's coverage universe.

Average Weekly Returns:

Average 1-Week Return of All Stocks Mentioned Below: -3.41%

Average 1-Month Return of All Stocks Mentioned Below: 2.80%

Analysis of List Alpha:

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Week): 4 out of 7 (57.14%)

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Month): 3 out of 7 (42.86%)

(List sorted by monthly performance, from best to worst)

1. Ralcorp Holdings Inc. (RAH): Provides various food products and ready-to-eat cereal products. Revenues increased by 7.76% during the most recent quarter ($1,067.3M vs. $990.4M y/y), while the size of inventory changed by 1.98% ($432.5M vs. $424.1M y/y). Inventory, as a percentage of current assets, decreased from 42.64% to 36.44% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

2. H. J. Heinz Company (HNZ): H. J. Heinz Company manufactures and markets food products for consumers, and foodservice and institutional customers in North America, Europe, the Asia Pacific, and internationally. Revenues increased by 0.47% during the most recent quarter ($2,827.21M vs. $2,813.96M y/y), while the size of inventory changed by -4.99% ($1,541.13M vs. $1,622.07M y/y). Inventory, as a percentage of current assets, decreased from 42.44% to 39.54% during the most recent quarter (time interval comparison 13 weeks ending 2012-10-28 to 13 weeks ending 2011-10-26).

3. General Mills (NYSE:GIS): General Mills, Inc. manufactures and markets branded consumer foods worldwide. Revenues increased by 5.29% during the most recent quarter ($4,051M vs. $3,847.6M y/y), while the size of inventory changed by 1.14% ($1,808.5M vs. $1,788.1M y/y). Inventory, as a percentage of current assets, decreased from 43.65% to 34.66% during the most recent quarter (time interval comparison 13 weeks ending 2012-08-26 to 13 weeks ending 2011-08-28).

4. Inventure Foods (NASDAQ:SNAK): Engages in the development, production, marketing, and distribution of snack food products and frozen berry products to grocery retailers, mass merchandisers, club stores, convenience stores, and vend distributors in the United States and internationally. Revenues increased by 24.20% during the most recent quarter ($46.6M vs. $37.52M y/y), while the size of inventory changed by -22.72% ($28.13M vs. $36.4M y/y). Inventory, as a percentage of current assets, decreased from 66.12% to 57.57% during the most recent quarter (time interval comparison 3 months ending 2012-09-29 to 3 months ending 2011-09-24).

5. Overhill Farms Inc. (NYSEMKT:OFI): Overhill Farms, Inc. manufactures prepared frozen food products for branded retail, private label, foodservice, and airline customers. Revenues increased by 26.95% during the most recent quarter ($50.36M vs. $39.67M y/y), while the size of inventory changed by 2.64% ($19.84M vs. $19.33M y/y). Inventory, as a percentage of current assets, decreased from 50.98% to 46.46% during the most recent quarter (time interval comparison 13 weeks ending 2012-07-01 to 13 weeks ending 2011-07-03).

6. The Hain Celestial Group (NASDAQ:HAIN): The Hain Celestial Group, Inc., together with its subsidiaries, manufactures, markets, distributes, and sells natural and organic food, and personal care products in the United States and internationally. Revenues increased by 25.44% during the most recent quarter ($359.81M vs. $286.84M y/y), while the size of inventory changed by 10.14% ($199.92M vs. $181.51M y/y). Inventory, as a percentage of current assets, decreased from 46.75% to 43.87% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

7. Central Garden & Pet Co. (NASDAQ:CENT): Produces and sells products for the pet, and lawn and garden supplies industries primarily in the United States. Revenues increased by 5.39% during the most recent quarter ($397.24M vs. $376.91M y/y), while the size of inventory changed by 0.15% ($330.03M vs. $329.55M y/y). Inventory, as a percentage of current assets, decreased from 54.69% to 50.64% during the most recent quarter (time interval comparison 3 months ending 2012-09-29 to 3 months ending 2011-09-24).