Food stocks have come under significant pressure over the past several months. Traders have become more interested in more aggressive names as the market has rallied, and there are concerns that food inflation will turn into food deflation and stop the recent earnings momentum the stocks have enjoyed. However, the selling has gotten way overdone, and one name that stands out is The Kraft Heinz Company (KHC).

The company has done an excellent job in recent years in reducing its debt load, and even in a less favorable pricing environment, the company should be able to continue this into the future. Shares are attractively valued at 11X forward EPS estimates and a 4.9% dividend yield with the annual dividend of $1.60 a share safe. I will have more details in next week’s September issue, but for now, let’s buy stocks.

Buy KHC Stock under $35, my target is $40.