This food production technology company beat analysts’ earnings estimates by $0.04 last quarter and is forecast to grow by double-digits annually for the next five years.
John Bean Technologies Corp. (JBT)
From Weiss Stock Ratings Heat Maps
It’s true that a lot can go wrong in a year. So, we always must be wary of surprises and monitor incoming data. But consider how many things went “wrong” last year—and still stocks rose and rose. Plus, the economy is now heating up, unemployment is falling, and a huge tax break is just starting to work its magic on corporate bottom lines.
So how can you profit from a likely late-bull-market surge? By owning stocks that are standouts compared to their benchmark.
John Bean Technologies Corp. (JBT, Rated “A-”) is the least “sexy” of all. It provides basic food production technology, the machines that grind, mix, chill, package, and otherwise prepare foods for human consumption. Think about how apples from a field get sorted, cleaned, sliced, cored, and otherwise ready to be cooked and canned.
That’s all automation these days, and JBT makes it happen on an industrial scale. It seems unlikely that we’ll be eating less as the economy speeds up here and around the world. In fact, demand for packaged foods will only increase due to food safety rules for exports and imports. So, while JBT might not have as sexy a story to tell, its products are in high demand—and the stock’s 2-year total return of more than 149% speaks volumes about its prospects!
Mike Larsen, Weiss Stock Ratings Heat Maps, issues@e.weissratings.com; 1-877-934-7778, January 12, 2018