Latest news with #SJM
Yahoo
2 days ago
- Business
- Yahoo
The J. M. Smucker Stock Nears 52-Week Low: Opportunity or Red Flag?
The J. M. Smucker Company SJM has endured a challenging run in 2025, with its stock down almost 13% year to date. This decline starkly contrasts with the S&P 500's modest 1.2% gain and the Zacks Consumer Staples sector's 4.9% growth. However, the industry's average decline was just 5.3% during the same time frame. Image Source: Zacks Investment Research As of the last trading session, SJM closed at $95.96, just above its 52-week low of $93.30 reached on the same day. Notably, the stock is currently trading below both its 50-day and 200-day moving averages, reflecting ongoing weakness in momentum and investor sentiment. Image Source: Zacks Investment Research These developments raise a critical question for investors: Is SJM's slump a short-term correction due to temporary headwinds, or does it reflect deeper structural issues within the company? The J.M. Smucker stock has been under pressure due to persistent headwinds across several key business segments amid a tough operating landscape. One of the major drags has been its U.S. Retail Pet Foods segment, where net sales declined 13% year over year. This was largely due to retailer inventory adjustments, a drop in contract manufacturing sales related to divested brands and reduced demand in the dog snacks category. Measured retail sales for dog snacks fell 7%, impacted by inflation-driven cutbacks in discretionary pet spending. The volume/mix had an 11-percentage-point adverse impact on net sales, while net price realization decreased the metric by 2 percentage addition, the Sweet Baked Snacks segment reported a sharp 26% decline in net sales and a 14% drop in comparable net sales during the fiscal fourth quarter. This was caused by a 9-percentage-point drop from unfavorable volume/mix — particularly in snack cakes, donuts and private label offerings — and a 4-percentage-point decline from lower net pricing across the portfolio. Segment profit fell sharply by 72%, reflecting the full impact of elevated input costs, weakened pricing power and continued volume softness. Looking ahead to fiscal 2026, management expects comparable net sales in the Sweet Baked Snacks segment to decline in the low single digits, signaling continued challenges in consumer demand and pricing dynamics. The J.M. Smucker continues to grapple with gross margin pressure as it navigates elevated costs and ongoing volume challenges. In the fourth quarter of fiscal 2025, the company reported a 9% year-over-year decline in adjusted gross profit, primarily due to elevated costs, an unfavorable product mix and volume, and the noncomparable impact of recent divestitures. Adjusted operating income also declined by 8%, reflecting the drop in gross ahead, management expects the fiscal 2026 adjusted gross profit margin to range between 35.5% and 36%. This forecast reflects elevated commodity and manufacturing costs and negative volume/mix. Management also highlighted a roughly 50 basis point (bps) unfavorable impact from tariffs — most notably affecting the U.S. Retail Coffee segment — as a factor contributing to the margin the margin challenges, The J.M. Smucker expects its selling, distribution and administrative (SD&A) expenses to rise approximately 3% year over year in fiscal 2026. The increase is primarily caused by elevated marketing investments aimed at supporting key growth brands. Total marketing spend is projected to reach 5.7% of net sales, up 30 bps from the prior year. While these investments are intended to fuel long-term growth, they contribute to near-term cost headwinds as The J. M. Smucker navigates a dynamic operating environment. The J. M. Smucker continues to navigate a complex and rapidly evolving external environment, marked by ongoing tariff impacts, regulatory changes, persistent input cost inflation and shifting consumer behaviors — all of which are shaping its fiscal 2026 outlook. For the first quarter of fiscal 2026, management anticipates a low-single-digit decline in reported net sales. On a comparable basis, net sales are expected to remain flat, with mid-single-digit pricing gains offset by unfavorable volume and mix dynamics. The adjusted earnings per share (EPS) are projected to decline approximately 25% in the fiscal first quarter due to decreased gross profit in the U.S. Retail Coffee and Sweet Baked Snacks near-term headwinds underscore the complexity of the Zacks Rank #4 (Sell) company. Investors may want to stay cautious until clearer signs of recovery emerge. Nomad Foods Limited NOMD manufactures, markets and distributes a range of frozen food products in the United Kingdom and internationally. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for Nomad Foods' current fiscal-year sales and earnings implies growth of 4.6% and 7.3%, respectively, from the prior-year levels. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on S.A. BRFS raises, produces and slaughters poultry and pork for the processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank of 2 (Buy). BRFS delivered a trailing four-quarter earnings surprise of 5.4%, on Zacks Consensus Estimate for BRF S.A.'s current fiscal-year earnings implies growth of 11.1%, respectively, from the prior-year Group AB OTLY, an oatmilk company, provides a range of plant-based dairy products made from oats. It presently carries a Zacks Rank of 2. OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on consensus estimate for Oatly Group's current fiscal-year sales and earnings implies growth of 2.3% and 63.8%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The J. M. Smucker Company (SJM) : Free Stock Analysis Report BRF S.A. (BRFS) : Free Stock Analysis Report Nomad Foods Limited (NOMD) : Free Stock Analysis Report Oatly Group AB Sponsored ADR (OTLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Stifel Cuts J. M. Smucker's (SJM) PT, Maintains Hold
The J. M. Smucker Company (NYSE:SJM) is one of the 10 stocks that Jim Cramer and analysts are watching. On June 11, Stifel analyst Matthew Smith cut the price target on the stock from $120 to $106 and maintained a Hold rating. The firm noted that while the company posted a stronger-than-expected fourth quarter, its FY26 outlook suggests an 11% drop in EPS, which came in about 13% below the firm's forecast. The analyst lowered the FY26 EPS estimate by $ 1.43 to $8.95, mainly due to weaker performance in Coffee and Sweet Baked Goods. On the same day, several other firms, including Stifel, Barclays, and BofA, revised their price targets downward on J. M. Smucker (NYSE:SJM) stock. A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. On June 10, Cramer discussed The J. M. Smucker Company (NYSE:SJM) and said: 'But let's look at the other way. Let's talk about what old folks were interested in. There's a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms… It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn't seem to notice. They ran into the fire, they bought Hostess, that's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho Hos may not turn very well. Let's just say they're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker's talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.' The J. M. Smucker Company (NYSE:SJM) produces and sells a wide range of branded food and beverage products, including coffee, snacks, spreads, pet food, baked goods, and frozen items. While we acknowledge the potential of SJM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
The J. M. Smucker Company (SJM): The Disaster Was 'Jarring,' Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where The J. M. Smucker Company (NYSE:SJM) stands against other stocks that Jim Cramer discusses. The J. M. Smucker Company (NYSE:SJM) is one of America's largest food products companies known for its well-known brands such as Folgers and Dunkin. The stock has bled 14% year-to-date primarily on the back of an unbelievable 15.6% share price drop in June. The J. M. Smucker Company (NYSE:SJM)'s shares tanked after the firm's midpoint annual earnings per share guidance of $9 missed average analyst estimates of $10.23 by a wide margin. During the call, the firm's management warned that its green coffee supply could be impacted by tariffs and added that it expects to continuously face demand and inflationary pressures. The J. M. Smucker Company (NYSE:SJM)'s quarterly revenue of $2.14 billion also missed analyst estimates of $2.19 billion. Cramer was shaken by the results: 'But the Smucker disaster yesterday was jarring. Including the gigantic charge they took on Hostess Twinkies. Mark Smucker should not have bought that.' A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. Ahead of the earnings, Cramer warned that The J. M. Smucker Company (NYSE:SJM) was going 'nowhere': 'But let's look at the other way. Let's talk about what old folks were interested in. There's a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms… It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn't seem to notice. They ran into the fire, they bought Hostess, that's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho Hos may not turn very well. Let's just say they're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker's talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.' While we acknowledge the potential of SJM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
6 days ago
- Business
- Yahoo
The J. M. Smucker Company (SJM): The Disaster Was 'Jarring,' Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where The J. M. Smucker Company (NYSE:SJM) stands against other stocks that Jim Cramer discusses. The J. M. Smucker Company (NYSE:SJM) is one of America's largest food products companies known for its well-known brands such as Folgers and Dunkin. The stock has bled 14% year-to-date primarily on the back of an unbelievable 15.6% share price drop in June. The J. M. Smucker Company (NYSE:SJM)'s shares tanked after the firm's midpoint annual earnings per share guidance of $9 missed average analyst estimates of $10.23 by a wide margin. During the call, the firm's management warned that its green coffee supply could be impacted by tariffs and added that it expects to continuously face demand and inflationary pressures. The J. M. Smucker Company (NYSE:SJM)'s quarterly revenue of $2.14 billion also missed analyst estimates of $2.19 billion. Cramer was shaken by the results: 'But the Smucker disaster yesterday was jarring. Including the gigantic charge they took on Hostess Twinkies. Mark Smucker should not have bought that.' A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. Ahead of the earnings, Cramer warned that The J. M. Smucker Company (NYSE:SJM) was going 'nowhere': 'But let's look at the other way. Let's talk about what old folks were interested in. There's a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms… It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn't seem to notice. They ran into the fire, they bought Hostess, that's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho Hos may not turn very well. Let's just say they're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker's talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.' While we acknowledge the potential of SJM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
6 days ago
- Business
- Yahoo
Jim Cramer on J.M. Smucker: 'It's Real'
The J. M. Smucker Company (NYSE:SJM) is one of the 18 stocks Jim Cramer recently shared insights on. While discussing the company, Cramer said that almost every analyst who covers the stock is bearish about the business. He commented: 'But let's look at the other way. Let's talk about what old folks were interested in. There's a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It's covered by 15 different firms… It's real. We've all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn't seem to notice. They ran into the fire, they bought Hostess, that's right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that'll be the last one, as Twinkies and Ho Hos may not turn very well. Let's just say they're going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker's talking about a 20% boost in coffee prices. That's not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.' A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. J. M. Smucker (NYSE:SJM) produces a wide range of branded food and beverage products, including coffee, snacks, pet food, spreads, and baked goods. While we acknowledge the potential of SJM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
