Orrville, Ohio-based The J. M. Smucker Company (SJM) manufactures and markets branded food and beverage products. Valued at $13 billion by market cap, the company's principal products include peanut butter, shortening and oils, fruit spreads, canned milk, baking mixes and ready-to-spread frostings, flour and baking ingredients, juices and beverages, and more.
Shares of this leading consumer packaged goods company have underperformed the broader market considerably over the past year. SJM has declined 12.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024, SJM stock is down 3.4%, while SPX is up 18.1% on a YTD basis.
Narrowing the focus, SJM has also lagged behind the iShares U.S. Consumer Staples ETF (IYK). The exchange-traded fund has gained about 7.2% over the past year. Moreover, the ETF’s 9.6% gains on a YTD basis outshine the stock’s losses over the same time frame.
SJM’s overall performance can be attributed to the impact of acquisitions, divestitures, and foreign currency.
On Jun. 6, SJM shares closed up more than 4% after reporting Q4 results. Its adjusted EPS of $2.66 topped Wall Street expectations of $2.32. The company’s revenue was $2.2 billion, falling short of Wall Street forecasts of $2.3 billion. SJM expects fiscal 2025 adjusted EPS to be between $9.80 and $10.20 and expects its revenue to increase between 9.5% and 10.5% from the prior year.
For the current fiscal year, ending in April 2025, analysts expect SJM’s EPS to grow 1.1% to $10.05 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 13 analysts covering SJM stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings and eight “Holds.”
This configuration is more bullish than three months ago, with four analysts suggesting a “Strong Buy.”
On Aug. 20, Citigroup Inc. (C) analyst Thomas Palmer maintained a “Buy” rating on SJM with a price target of $138.
The mean price target of $128.25 represents a 5.1% premium to SJM’s current price levels. The Street-high price target of $140 suggests an upside potential of 14.7%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
