3 Reasons to Sample Niche Food Stocks

Believe it or not, spam, the legendary product of Hormel Foods HRL, is a delicacy in Asia. It is also served at L&L Hawaiian Barbecue, a chain in the United States that features grilled spam in the Saimin dish. Spam has been very good to the shareholders of Hormel Foods, as it is up more than 27 percent for the last year of market action. There are other niche foods stocks such as The Original Soupman SOUP and Noodles & Company NDLS that should deliver tasty returns as investors patiently await for Inn n Out Burgers to go public!

Hormel Foods, Soupman, and Noodles & Company should be pretty much recession-proof.

SoupMan, the soup from the classic "Soup Nazi" episode of the legendary sitcom Seinfeld, should do better in a recession. That is when more soup is consumed. The wide line of products ensure that Hormel Foods performs well as a classic defensive stock in adverse economic conditions.

All should perform well in the increasing urbanization of the world.

Soupman, Hormel Foods, and Noodles & Company all cater to the urban lifestyle. Noodles & Company and Soupman offer products for those who want to eat out or on the run. Hormel Foods has a wide range of packaged products that can be consumed by those who prefer prepared foods, or that served in restaurants such as L&L Hawaiian Barbecue.

The numbers are proving the appeal of these food stocks.

According to Yahoo! Finance, quarterly revenue growth is at 39.40 percent for Soupman. Quarterly revenue growth is at 15.40 percent for Noodles & Company. For Hormel Foods, it is 7.10 percent.

For investors, like a supermarket, there is something for everyone in the food sector. Hormel delivers steady growth, which allows it to finance a solid income. But small caps like Soupman and Noodles & Company. will most likely deliver high growth. All should offer tasty long term returns.