In This Article, We Discuss 4 Bargain Food Stocks That Are Trading At Big Discounts In The Market
All companies were identified using the Simple Investing Success stock screener, which scans for companies meeting our simple criteria of cheap and good, using simple metrics for discount and valuation.
4 Bargain Food Stocks Under $10
Let’s take a closer look at each company.
Good Times Restaurants (GTIM)
- Earnings Yield: 47.84%
- 52-week range: $1.25 – $6.32
- Analyst Price target: $12.04
- Price/Free Cash Flow: 7.06
- Price/Sales: 0.56
- Price/Earnings: 3.73
Good Times Restaurants operates in the restaurant business in the US through the following franchises: Good Times Burgers & Frozen Custard (an upscale quick-service drive-through dining restaurant) and Bad Daddy’s Burger Bar (a full-service upscale casual dining restaurant).
As of December 2020, the company operated, franchised or licensed 37 Bad Daddy’s Burger Bar restaurants and 25 Good Times Burgers & Frozen Custard. The company was founded in 1987 and is based in Golden, Colorado. The current CEO is Ryan Zink.
The YTD performance for GTIM is 71.93%.
David’s Tea (DTEA)
- Earnings Yield: 10.21%
- 52-week range: $1.10 – $7.44
- Analyst Price target: $7.03
- Price/Free Cash Flow: NA
- Price/Sales: 0.98
- Price/Earnings: 1.77
David’s Tea specializes in proprietary loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories through its e-commerce platform at davidstea.com and the Amazon Marketplace. The company’s wholesale customers include over 2,500 grocery stores and pharmacies and 18 company-owned stores across Canada. The company primarily offers proprietary tea blends that are exclusive to their brand, as well as traditional single-origin teas and herbs.
In March 2020, the company closed all of it’s stores in the US and kept only 18 of it’s stores in Canada due to the COVID-19 pandemic. In July 2020, the company announced that it would be implementing a restructuring plan under the CCAA in order to accelerate it’s transition to an online retailer and wholesaler. The company stated that it would continue to operate its online business through it’s e-commerce platform at davidstea.com, on the Amazon Marketplace and through its wholesale distribution channel.
The current CEO is Sarah Segal and the company is based in Canada.
The YTD performance for DTEA is 42.32%.
Lifeway Foods (LWAY)
- Earnings Yield: 10.19%
- 52-week range: $4.50 – $8.09
- Analyst Price target: $12.83
- Price/Free Cash Flow: 15.79
- Price/Sales: 0.90
- Price/Earnings: 18.30
Lifeway Foods produces and markets probiotic-based products in the US and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types, including low fat, non-fat, whole milk, protein, and BioKefir.
The company also offers European-style soft cheeses, ProBugs, a line of kefir products designed for children, and Icelandic Skyr, a line of strained kefir and yogurt products. It sells its products under the Lifeway and Fresh Made brand names, as well as under private labels on behalf of customers primarily through direct sales force, brokers, and distributors.
The company was founded in 1986 and is based in Morton Grove, Illinois. The current CEO is Julie Smolyansky.
The YTD performance for LWAY is 8.13%.
AgroFresh Solutions (AGFS)
- Earnings Yield: 11.84%
- 52-week range: $1.81 – $2.89
- Analyst Price target: $5.71
- Price/Free Cash Flow: 2.38
- Price/Sales: 0.66
- Price/Earnings: NA
AgroFresh Solutions provides data-driven technologies and services to enhance fresh produce quality and extension of shelf life. The company is composed of two segments: AgroFresh Core and Tecnidex. It offers harvesting tech solutions primarily in the following fruit categories: apples, pears, citrus, kiwifruit, avocados, and bananas. AgroFresh provides support to growers, packers, and retailers along the supply chain in order to enhance freshness and quality, while reducing waste.
The flagship product for AgroFresh is its SmartFresh system which customers use to regulate the effects of post-harvest ripening in order to preserve the texture, taste, and appearance of produce during the storage, transportation, and retail process.
The company is headquartered in Philadelpha, PA and operates in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The current CEO is Clinton Lewis.
The YTD performance for AGFS is -9.25%.
We hope you enjoyed this list of 4 bargain food stocks to buy under $10 in 2021. Be sure to add these picks to your Watch List and if you haven’t done so already, check in on the performance of our Current Portfolio. Keep it simple and always do your due diligence.
This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.