Flowers Foods, Inc. (NYSE:FLO)
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The Company is a producer and marketer of packaged bakery foods for retail and foodservice customers. Its businesses are organized into two reportable segments: Flowers Bakeries and Flowers Specialty.
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Many reasons to like this stock. It is trading below its 5yr average P/E (~18 vs 22). Good corporate governance - the company requires its top executives to hold stock (5X base salary for CEO, 3X for COO, CFO, etc) and insiders own 12% of the stock. Except for a small hit in 2009, margins and ROE have been growing the past few years. The company expects EPS growth of 10%-15% in 2010, and has had double-digit dividend increases for the past 5+ years. They also have good growth prospects as they're mostly located in the south so can continue growing throughout the rest of the country.