Shares in Dean Foods Company NYSE: The company also increased its earnings guidance for the fiscal year. Dean Foods Company's reported earnings of 36 cents per share was double what the company had earned in the second quarter of FY Revenue did fall compared to the previous year, but this was primarily due to lower milk prices which, of course, had the effect of reducing the company's costs and contributing to its earnings boost.

Insiders Are Buying Dean Foods. Should You? -- The Motley Fool

The company did finish the quarter with comparatively little cash on hand compared to its debt burden, but part of the strategy behind the WhiteWave IPO is to use the expected proceeds to pay down debt.

Because of this spinoff, investors may want to pay attention to Dean Foods as spinoffs have the potential to create value - the management of the newly independent company can focus on corporate policies which are best for that business unit and increase its value above what it was as part of a larger organization.

Dean Foods Co - NYSE:DF - Stock Quote & News - TheStreet

Among the hedge funds who reported positions in Dean Foods Company at the end of the first quarter were billionaire David Tepper's Appaloosa Management and Cliff Asness's Should i buy dean food stock Capital Management.

We would expect more hedge funds to take a look at Dean Foods as it prepares its spinoff.

With the increase in its stock price, Dean Foods now trades at 13 times its expected earnings for fiscal year and a five-year PEG ratio of 0. This seems like a quite reasonable multiple for should i buy dean food stock consumer staples company, even without considering the effect that a spinoff might have.

5 Grocery Store Stocks to Buy for Grilling Season - TheStreet

Unfortunately, Dean Foods is larger than its public pure-play dairy peers, and its other pure-play dairy peers are private, but it can forex trading knowledge to action be compared with food companies that provide basic consumer staples with the understanding that Dean Foods is more exposed to swings in dairy prices.

Kraft should also be noted by conservative investors for its remarkably low beta of 0. We would also compare Dean Foods to meat and bakery player Hillshire Brands NYSE: We look at Dean Foods against larger, more diversified food companies and it seems to be priced in the same range even after its large price increase.

True, because Dean Foods is more concentrated in dairy products it faces more commodity risk, but the spinoff of a business unit is at least an event to watch.

Investors may want to take a cue from spinoff research and get into the stock at a price competitive with its peers, and even if they are avoiding the stock for now should consider buying shares of WhiteWave once it becomes a stand-alone public company. I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Long Ideas Short Ideas Cramer's Picks IPOs Quick Picks Sectors Editor's Picks. Is Dean Foods Still A Buy After Earnings?

By Matt Doiron Shares in Dean Foods Company NYSE: Investing IdeasLong IdeasConsumer GoodsDairy Products. Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here.

Follow Insider Monkey and get email alerts.