Sometimes trading the equity markets can be tricky, and even counterintuitive. Other times, it’s just a simple matter of buying the trend and then watching your money grow.

The latter circumstance has been the case of late in food stocks, as many of the biggest and best food producers are seeing their stocks surge to multi-year highs and/or new all-time highs.#-ad_banner-#

Why the boom in food stocks?

For starters, there’s a growing global population that’s increasingly able to afford better-quality, more protein-rich and more Westernized diets. A burgeoning middle class in the biggest emerging markets such as China and India are demanding more meat, and they’re also demanding snack foods and treats. The same circumstance holds for Europe and the United States. In fact, consumers around the world are gobbling up more food, and that’s helped fuel the bottom lines of several food companies.

Perhaps an even more important factor driving food stocks higher is the fact that food stocks are considered safe-haven plays for investors whenever the uncertainty factor gets ramped up. With the Dow making new all-time highs, there remains a lot of uncertainty about the future of the current market rally, thanks in large part to exogenous events such as Europe’s political woes, sequester cuts here in the United States, and a general sense that an economic rebound is tenuous at best.

When you combine basic supply and demand with positive demographics, and when you add to the mix a flight to safety, you get a boom for food stocks likely to continue through the spring.

So, which food stocks are making new highs and are likely to continue making investors’ wallets fat? Here are three of my favorites:

1. The Hershey Company (NYSE: HSY)
The makers of a variety of brand-name foods, including their namesake chocolate bars, Hershey is a stock that keeps delivering profitable returns for traders. The stock made new all-time highs Tuesday, March 5 above $85 a share, and just this year alone, shares are up more than 17%. In the past year, Hershey has seen its share price surge almost 40%.

I suspect that the food stock boom will continue to make shares of Hershey an attractive option for traders going forward, especially if the safe-haven trade causes a rotation out of consumer discretionary stocks and into consumer goods stocks.

Action to Take –> Buy Hershey at the market price. Set stop-loss at $77.81, approximately 9% below the current price. Set initial price target at $93.03 for a potential 9% gain in 2-3 months.

2. Hormel Foods Corp. (NYSE: HRL)
The makers of such high-profile food brands as SPAM and Skippy peanut butter have seen a big run higher since the year began. Shares of Hormel have skyrocketed more than 20% in the first two months of 2013, and are up nearly 35% during the past 52 weeks.

Like Hershey, Hormel’s stock made a new all-time high Tuesday, above $38 a share. If the momentum in the sector continues, then look for investors to drive Hormel’s stock higher.

Action to Take –> Buy HRL at the market price. Set stop-loss at $34.94, approximately 9% below the current price. Set initial price target at $41.78 for a potential 9% gain in 2-3 months.

3. ConAgra Foods (NYSE: CAG)
The final company on the food stock hit parade is ConAgra Foods. Shares of the maker of Hunt’s ketchup, Chef Boyardee canned foods and Reddi-whip toppings have been on a tear of late, spiking some 16% so far in 2013. During the past year, ConAgra Foods is up more than 33%.

On Tuesday, March 5, the shares hit their highest point in 15 years at close to $35, although they still trade just shy of their all-time high. I think the stock has a lot more room to run.

Action to Take –> Buy ConAgra Foods at the market price. Set stop-loss at $31.91, approximately 8% below the current price. Set initial price target at $38.16 for a potential 9% gain in 2-3 months.

This article originally appeared on ProfitableTrading.com:
3 Food Stocks That Look Ready to Continue Their Rally to New Highs