Equity Research and Investment Analysis

Del Monte Foods (DLM) has extended its steady upwards trend today, but even after the impressive run of 84% in the last year, the stock may have further to rise. While the stock has been on an undeniable tear, DLM's fundamentals have advanced in proportion during that time. Through the first nine months of the year, DLM has earned $.89 per share which is a substantial improvement to earnings of $.40 through this point last year.

Del Monte Foods (DLM) is an under the radar stock for many investors, but the underlying value of a well run company is hard to deny. DLM reported fiscal second quarter results on Thursday morning that were much better than expected and the stock is up nearly 4% on the announcement.

Since the current rally began in early March, Del Monte has under performed the S&P 500 by about 22 percent, suggesting that there may be further price appreciation yet to be achieved. The underlying fundamentals are improving in this economy and could support a price of somewhere between $9 and $11 for this company.