Is J. M. Smucker Stock Underperforming the S&P 500?
With a market cap of $10.4 billion, The J. M. Smucker Company (SJM) produces a wide range of branded food and beverage products for global markets. Based in Orrville, Ohio, the company operates through several segments, including U.S. Retail Coffee, U.S. Retail Frozen Handheld and Spreads, U.S. Retail Pet Foods, and Sweet Baked Snacks.
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. Its portfolio of well-established, trusted brands across multiple food and beverage categories, including coffee, pet food, spreads, and snacks, fuels its market leadership. Additionally, the company's strategic acquisitions and supply chain efficiencies support long-term growth and operational stability.
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However, SJM has been trading 22.5% below its 52-week high of $125.42, met on Nov. 26, last year. However, the stock has dipped 13% over the three months, underperforming the S&P 500 Index's ($SPX) 6.5% uptick during the same time frame.
On a YTD basis, SJM has declined 11.7%, underperforming $SPX's 3.6% decline. Over the past year, SJM has declined 13.1%, underperforming $SPX's 11.8% rise over the same period.
The stock has been trading below its 50-day and 200-day moving averages since early May, reinforcing a downtrend.
J.M. Smucker shares dropped 13% in the second week of June, as of June 12, following weak fiscal Q4 results that saw sales and adjusted EPS decline by 3% and 13% to $2.1 billion and $2.31, respectively. Investor sentiment was further dampened by a $980 million impairment charge tied to its $5.6 billion Hostess Brands acquisition, bringing total write-downs on the deal to $2 billion, an indication that the company may have substantially overpaid for the purchase.
Its peer, Hormel Foods Corporation (HRL), has dropped 3.1% in 2025 and 1.8% over the past 52 weeks, notably outperforming SJM.
SJM has a consensus rating of 'Moderate Buy' from 16 analysts covering it. Its mean price target of $111.67 indicates a modest 14.9% upside potential from the current market price.
On the date of publication, Kritika Sarmah 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. This article was originally published on Barchart.com
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