Pasta, frozen meals and yogurt aren’t exactly exciting products. After all, they’re not as “sexy” as the latest cloud computing software or biotech drug. But when it comes to returns, ketchup was a big winner during the COVID-19 crisis. Thanks to all of our quarantine efforts, work-from-home orders, and travel bans, packaged food and ingredients for home-cooking and baking surged. And that made the producers of these items see massive revenue gains, big-time profits and rising share prices. Certainly not the norm for the traditional steady but sleepy sector.
The question now is whether or not the packaged food names can keep their growth in the post-pandemic world.
The short answer could be a resounding yes.
Many of the tailwinds that have propelled the sector during the pandemic are still persisting. Moreover, compelling valuations and big dividend yields make the sector an interesting buy in the new year. All in all, the packaged food producers can satisfy investors’ hunger for gains.
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