Cott Corporation (NYSE: COT) is a small cap in the food sector that has a big presence like The Original SoupMan (OTC: SOUP).
Both “punch above their weight class” is terms of market presence. The Original SoupMan has the third highest brand awareness, behind only giants in the sector like Campbell Soup (NYSE: CPB) and Progresso from General Mills (NYSE: GIS). Both are also on the aisles of Wal-Mart (NYSE: WMT), which is very impressive for a small cap.
Cott Corporation is the world’s largest private label beverage maker.
For value investors, it is selling at a substantial discount. The price-to-sales ratio is only 0.32. That means that each dollar of sales is priced at a two-thirds discount. The relative strength index is only 27, which is very alluring. That is a gauge of how low the stock price is compared to the strength of the company. It is indicative of turnaround situations.
Growth investors should be pleased by the projected earnings-per-share growth of 19.70 percent. That is up from 16 percent over the last five years. It is much stronger than the growth this year. Being in Wal-Mart should deliver more growth as it expands around the world.
The dividend yield of 3.43 percent is particularly alluring. At present, the average dividend yield for a member of the Standard & Poor’s 500 Index (NYSE: SPY) is under 2 percent. Cott Corporation also has plenty of cash. It has a strong dividend history, which is bullish for income investors for the future.
Cott Corporation is down for the last week, month, quarter, six months, and year of market action.
For 2014, it is off by nearly 13 percent. It is now trading around $7 a share. The mean analyst target price over the next year of market action is $8.72. With its strong dividend yield, investors are paid to wait for the rebound.