ConAgra Foods, Inc.

ConAgra is one of the pillars of American agribusiness. And it reflects the broader strengths and weaknesses of its industry perhaps more than any other major industry player. Despite its humble headquarters in Omaha, Nebraska, ConAgra is a titan that stands astride the supermarket aisles of the nation. Popular brands like Peter Pan peanut butter and Hebrew National hot dogs are a critical part of quintessential Americana.

Yet the peanut butter recall that brought Peter Pan to its knees is part of a larger, uglier tradition at ConAgra. In 2001, a Colorado turkey processing plant was found by the US Department of Agriculture to have the highest rate of salmonella contamination in the country. More than half of the turkeys processed were contaminated.

ConAgra became a behemoth by going on a buying spree that lasted more than two decades. But at no time did the company consider moving outside of its primary competency in the food industry. Frozen food, packaged meat, and cake mix are all different businesses, but they all are subject to similar risks.

Food doesn't seem like it should be a highly cyclical business, but that is precisely what history has revealed it to be. Ironically, food is entering a very strong part of its long-term cycle and looks poised to see substantial growth in the coming years.

ConAgra represents everything that is good and bad about modern agribusiness, and these days that makes stock symbol CAG a good buy.