BOSTON (TheStreet) -- Stocks rose about 3.3% last week, clawing back gains from earlier in the month when investors were concerned about mounting debt woes in Europe and the possibility of rising interest rates in China and the U.S. The following five undervalued stocks may shield investors from more volatility.
5. J.M. Smucker
sells jams and jellies.
: Fiscal second-quarter net income nearly tripled to $140 million, as earnings per share climbed 26% to $1.18. Revenue grew 52% to $1.3 billion. Smucker's operating margin widened from 11% to 18%. Its 0.3 debt-to-equity ratio indicates modest leverage.
: J.M. Smucker has increased 47% over the past year, beating the
Dow Jones Industrial Average
S&P 500 Index
. The stock trades at a price-to-earnings ratio of 17, a discount to food-products peers. The shares offer a 2.3% dividend yield.
4. General Mills
sells cereal and other food products.
: Fiscal second-quarter profit increased 50% to $566 million, or $1.66 a share, as revenue inched up 2% to $4.1 billion. The company's operating margin widened from 12% to 22%. A quick ratio of 0.6 reflects weak liquidity. A 1.1 debt-to-equity ratio indicates a debt-heavy capital structure.
: General Mills has advanced 30% over the past 12 months, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to food-products peers. The shares offer a 2.7% dividend yield.
3. Lancaster Colony
sells food products and candles.
: Fiscal second-quarter profit climbed 39% to $40 million, or $1.40 a share, as revenue increased 5.5% to $304 million. Lancaster's operating margin extended from 12% to 20%. The company holds $91 million of cash and no debt.
: Lancaster appreciated 43% during the past 52 weeks, more than the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 14, a discount to food-products peers. The shares offer a 2% dividend yield.
2. Lincoln Educational Services
provides career education. The company is scheduled to report fourth-quarter results March 3.
: Third-quarter profit more than doubled to $14 million, or 50 cents a share, as revenue grew 48% to $148 million. Lincoln's operating margin stretched from 10% to 16%. The company has an admirable financial position, with $38 million of cash and $37 million of debt.
: Lincoln Educational Services has increased 46% over the past year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 14, a discount to diversified consumer services peers. Lincoln doesn't pay dividends.
1. Church & Dwight
sells household products.
: Fourth-quarter profit grew 19% to $53 million, or 74 cents a share, as revenue ascended 4% to $671 million. Church & Dwight's operating margin widened from 14% to 15%. A quick ratio of 1.2 indicates adequate liquidity. A debt-to-equity ratio of 0.5 demonstrates conservative leverage.
: Church & Dwight has climbed 29% over the past year, underperforming U.S. benchmarks. The stock trades at a price-to-earnings ratio of 19, a premium to household products peers. The shares offer a 0.9% dividend yield.