This $15 Stock Might Be the Only Value Play Left

 
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This $15 Stock Might Be the Only Value Play Left
Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance
Pawn Chess Piece Many investors don't realize that this name is a public company.
 

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WAROverheard Inside The War Room
Pawn The packaged goods sector could represent the best "value" plays in the entire market.
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Bryan Bottarelli
The packaged goods sector - think of names such as The Hershey Company (NYSE: HSY), General Mills (NYSE: GIS), Campbell Soup Company (NYSE: CPB) and The J.M. Smucker Company (NYSE: SJM) - has lagged the S&P 500 since 2018, gaining only 20% versus the S&P's gain of 60%.

But now that everything on Wall Street has gotten so expensive, underperformance in the packaged goods sector could finally equate to an underappreciated value play.

In my view, the best way to play both growth and value at the same time comes from Hostess Brands (Nasdaq: TWNK).

As I'm sure you know, this company dates back to 1919, when the Hostess CupCake was introduced to the public. That was then followed by Twinkies in 1930.

Remember these on grocery store shelves?
 
Old Twinkies
 
In the years that followed, Hostess expanded into brands that include Ding Dongs, Ho Hos, Donettes, Zingers and Fruit Pies.

But here's what I find interesting...

Many investors don't realize that Hostess is a public company.

It came out of bankruptcy in 2013 and went public three years later.

Hostess has leveraged its brand recognition by offering a wide assortment of new flavors and varieties, such as banana creme and blueberry creme Twinkies.
 
Twinkies
 
And right now, Hostess is an under-the-radar recovery story.

Trading at 18 times 2021 projections, it's one of the fastest-growing food companies, with sales growth at 4% and earnings per share growth at 10%.

This is why J.P. Morgan has given it an "Overweight" rating and a $20 price target.
 
Hostess Brands Daily
 
Action Plan: As a value play that's also experiencing the strongest growth within the packaged goods sector, Hostess Brands is a "Buy" at current levels.

Yours in smart speculation,
Bryan Bottarelli Signature
Bryan Bottarelli, Head Trade Tactician
Monument Traders Alliance

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