This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Takeover Targets to Buy Before Wall Street Finds Out

Stocks in this article: ICE SNA KLAC TER HRL

Hormel Foods

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Food stocks are some of the biggest players in the M&A business, frequently buying and selling brands piecemeal or whole hog (pun intended) to build exposure to a particular type of packaged food product. That's why Hormel Foods (HRL) makes our list of potential takeover targets. In addition to Hormel's eponymous label, the firm also owns household brands like Jennie-O, Spam and Country Crock.

>>5 Dividend Stocks Ready to Pay You More

Hormel is a meat stock. The firm earns more than half of its revenues in the fresh meats business, producing ham, bacon, and turkey for grocery stores across the country. Customers are more flexible about fresh meat prices than they are with shelf stable products. That fact gives Hormel considerable pricing power at the cash register. On the other side of the equation, vertical integration has helped Hormel keep its own costs lower. Because Hormel generally raises the animals that it sells, it's able to save costs and absorb more inflation in its cost of goods sold.

HRL's balance sheet looks attractive right now, with more than a billion dollars in cash and less than a quarter of that amount in debt. While a brand acquisition attempt is more likely than a buyer looking to takeover the whole firm, either scenario unlocks considerable value for shareholders.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs