With a market cap of around $11 billion, The J. M. Smucker Company (SJM) is a leading manufacturer and marketer of popular consumer food, beverage, and pet products in North America, with operations expanding internationally. Its diverse brand portfolio includes household names like Smucker's, Folgers, Jif, Dunkin', Meow Mix, and Milk-Bone, distributed through supermarkets, online retailers, and food service providers.
Shares of the food maker have significantly underperformed the broader market over the past 52 weeks. SJM has dropped 18% over this time frame, while the broader S&P 500 Index ($SPX) has gained 23.2%. On a YTD basis, shares of SJM are down 6.3%, compared to SPX’s 4.2% increase.
Narrowing the focus, the Orrville, Ohio-based company has also lagged behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.7% rise over the past 52 weeks and 2.4% return on a YTD basis.
J.M. Smucker stock jumped 5.7% on Nov. 26 due to a strong Q2 2025 performance, driven by resilient demand for its packaged and frozen foods, as well as coffee price hikes. The company reported an adjusted quarterly profit of $2.76 per share, surpassing analysts' estimates. Its U.S. retail coffee segment saw a 3% sales increase to $704 million, helping offset higher coffee costs from supply chain disruptions. The Hostess Brands acquisition also boosted gross profit by 22% and adjusted operating income by 27%, while the company’s decision to divest the Voortman business highlighted its focus on core growth areas. Additionally, Smucker raised its annual adjusted earnings forecast to a range of $9.70 per share - $10.10 per share.
For the fiscal year ending in April 2025, analysts expect SJM’s EPS to decline marginally year-over-year to $9.88. However, the company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 14 analysts covering the stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings, 10 “Holds,” and one “Strong Sell.”
On Jan. 25, Stifel analyst Matthew Smith lowered J.M. Smucker's price target to $120 while maintaining a “Hold” rating.
As of writing, SJM is trading below the mean price target of $121.86. The Street-high price target of $136 implies a potential upside of 28.4% from the current price.
On the date of publication, Sohini Mondal 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.More news from Barchart
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