Our latest featured recommendation is a global food and beverage producer of dozens of famous brand names, including Jell-O, Velveeta, Oscar Mayer, Maxwell House and many more, explains growth and income expert Crista Huff, editor of Cabot Undervalued Stock Advisor.

Kraft Heinz (KHC) is still in the early stages of revenue management initiatives in the wake of the July 2015 merger between Kraft Foods Group (KRFT) and privately owned H.J. Heinz.

The merger was backed by a $10 billion investment by 3G Capital and Warren Buffett’s Berkshire Hathaway (BRK.A). KHC is now the biggest holding in the Berkshire portfolio.

The stock joined our Growth & Income Portfolio in early April. I believe KHC is the premiere growth stock vs. its competitors within the US food sector.

Dating back to 1994, US food stocks traded at an average P/E of about 17.8. The current average P/E is much higher, at about 22.8.

That helps to explain why there haven’t been any other food stocks on my buy list in recent years. The sector’s been overvalued!

Kraft Heinz landed on my radar because it is the only major American food stock that’s projected to achieve aggressive earnings growth for the next two years, and the only one that’s undervalued.

Full-year EPS are expected to grow 46.6% and 21.8% in 2016 and 2017 (December year-end), with corresponding P/Es of 27.9 and 22.9. The dividend yield is 2.7%.

With such a disparity between earnings growth and valuation among US food stocks, you can be sure that every equity portfolio manager in America is seeing these same numbers and drawing the same conclusion.

Most of them will make KHC a priority portfolio selection when they’re diversifying into consumer staple stocks.

KHC could appeal to a wide variety of stock investors, including those who focus on growth, aggressive growth, growth & income, value and momentum.

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By Crista Huff, Editor of Cabot Undervalued Stock Advisor