I am recommending shares of Ingredion (INGR), a maker of starches, sweeteners and increasingly higher margin food ingredients that help promote a healthy life style.
INGR shares are down considerably from their 52-week high of over $132, as higher commodity costs have hurt earnings. Despite this, the company has earnings power of over $7 a share with upside, as the company’s higher margin products should make up a higher percentage of sales in the future. Commodity prices will ease at some point and the 2.5% dividend yield will add to returns.
Buy INGR under $95. My target is $110.