Brit Ryle, editor of The Wealth Advisory, focuses on high quality, fundamentally attractive growth stocks for investors with a long-term time horizon. Here, he looks at two of his top holdings, both in the food & beverage sector.

General Mills (GIS) manufactures and markets branded consumer foods in the U.S. and internationally. The company has beat estimates in three out of the last four quarters.
Meanwhile, the stock is getting more interest as a takeover target. General Mills stock continued to trend upward last month as investors weighed the potential of an acquisition by 3G Capital.

Thanks to the thunderbolt that was the purchase of Whole Foods Markets (WFM) by Amazon (AMZN), pretty much every other food-related stock took a hit. But GIS remains a solid takeover candidate for 3G.

And the Amazon and WFM deal just proves that there’s a big shakeup coming in the grocery aisles. I wouldn’t be surprised to see a bid for GIS materialize soon. And even if that does take some time, we’re still holding a great stock.

It’s undervalued. It has a stellar management team that’s squeezing every penny possible out of revenues. And it’s paying us a solid dividend that has a 13-year history of annual increases. General Mills remains a “Buy” anywhere under $60. The 12-month price target is $75.

Meanwhile, Starbucks Corporation (SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. It has beat or met expectations in four out of the past four quarters.

This might be the best company I’ve ever recommended. Period. It’s completely recovered from its two-year correction and has set new all-time high prices practically every week.
Management is going to continue to grow the company’s store count here in the U.S. and abroad. Starbucks is opening a new store in China every 15 hours.

And it plans to continue that pace for the next few decades. That will bring about serious revenue and earnings growth since about half of SBUX’s customers in China are under 40 years old. That means customers for life.

The China expansion that adds sales, the new high-end Roastery stores that boost average ticket prices, and the closure of mall-based Teavana stores are all factors that point to even higher stock prices very soon.

And after the Amazon and Whole Foods deal, there’s even a possibility that we might see Starbucks enter into an agreement to set up shop in some of the 431 upper-income, prime location spots that Amazon now owns. SBUX is a “Buy” anywhere under $65. The 12-month price target is steady at $85.

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