Ingredion (INGR) is up over 8% today after reporting fourth-quarter earnings per share (EPS) of $1.75 vs. $1.54, which was well above expectations of $1.46. Sales of $1.58 billion were up 3% and slightly above expectations of $1.57 billion. The company’s margins expanded significantly due to higher pricing.

For all of 2020, EPS fell to $6.23 from $6.61 due to lower volumes in the institutional food market caused by COVID-19. The company is only projecting a slight gain in sales and operating income this year, chiefly generated by their healthier ingredients division. However, I do believe they are being conservative with their outlook on COVID-19, and I look for EPS to reach $6.60 this year and the stock to continue to rally.

Buy INGR under $85. My target is $100.