With a market cap of $12.4 billion, The J. M. Smucker Company (SJM) manufactures and markets branded food and beverage products worldwide. Founded in 1897, the Orrville, Ohio-based company operates through U.S. Retail Coffee, U.S. Retail Frozen Handheld and Spreads, U.S. Retail Pet Foods, and Sweet Baked Snacks segments.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” and SJM is a prominent member of this category. The company benefits from a wide range of food products sold under famous brands such as Folgers, Café Bustelo, Dunkin', Jif, Smucker's, Smucker's Uncrustables, Meow Mix, Milk-Bone, and more.
SJM has been trading 5.8% below its 52-week high of $125.75, recorded on Apr. 1, last year. However, the stock has surged 7% over the three months, outperforming the Invesco Food & Beverage ETF’s (PBJ) 1.5% decline over the same time frame.
Over the past six months, SJM has declined 2.2%, outperforming PBJ’s 5% decline. However, over the past year, SJM has declined 5.9%, underperforming PBJ’s 5.7% decline over the same period.
The stock has been trading above its 200-day moving average since March-end and over its 50-day moving average since February-end, indicating an upturn in recent weeks.
SJM stock observed a marginal dip following its mixed Q3 earnings release on Feb. 27. The company reported a 1.9% year-over-year decline in its net sales, which amounted to $2.2 billion and a 1.4% growth in its adjusted operating income, which came in at $463.8 million. Its EPS amounted to $2.61, surpassing the Wall Street estimates by 10.1%. For the full fiscal 2025, the company expects a 7.3% increase in its net sales and raised its EPS guidance range to $9.85 to $10.15, up from the previously announced range of $9.70 - $10.10.
Its peer, Hormel Foods Corporation (HRL) has also observed a decline over the past year, with its shares dropping 2.5% over the past six months and 11.3% over the past 52 weeks, notably underperforming SJM.
Meanwhile, analysts remain cautious about the stock's prospects. SJM has a consensus rating of “Hold” from 15 analysts covering it. Its mean price target of $120.27 indicates a modest 1.6% upside potential from the current market price.
