As many people prepare their tables for tomorrow's Thanksgiving feast, Timothy Ramey, food and beverage analyst at D.A. Davidson & Co., shared some of his favorite food and beverage stocks for investors to chew on.
“These stocks have been performing pretty well and we’ve got favorites that we’d like to highlight,” Ramey told CNBC.
His picks include Sara Lee, Diamond Foods, American Italian, and Constellation Brands.
“[Sara Lee is] divesting their household and body care business and getting some surprisingly good valuations; and so that represents upside for the stock,” said Ramey.
“But it's a company that’s been reinvesting in its brand and that’s the most important factor for Sara Lee.”
Ramey said he has a “buy” rating on Constellation Brands and added: “It’s in a trade-down space that so many consumers gravitated to this year.”
However, Ramey said he is not a fan of the meat companies because he expects difficult times ahead with rising protein costs.
Ramey has a “neutral” rating on Tyson Foods, Smithfield Foods and Hormel.
Other Points of View:
- Turkey Day 101: How Well Do You Know Your Bird?
- Why You Should Play the Reflation Trade: Stock Picker
- Buy These 'Competitively Positioned' Stocks: Manager
CNBC Data Pages:
Ramey does not own shares of SLE, DMND, AIPC, STZ, HRL, TSN, or SFD.