Latest news with #MKC
Yahoo
9 hours ago
- Business
- Yahoo
Is McCormick Stock Underperforming the Dow?
Hunt Valley, Maryland-based McCormick & Company, Incorporated (MKC) is a global leader in flavor, producing and distributing spices, seasonings, and condiments. With a market cap of $19.6 billion, it operates in over 150 countries through its Consumer and Flavor Solutions segments. Categorized as a "large-cap stock," McCormick's valuation highlights its dominance in the flavor industry. Its innovative products and global reach underscore its position as a leader in the food sector. Is Palantir Stock Poised to Surge Amidst the Israel-Iran Conflict? 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer CoreWeave Stock Is Too 'Expensive' According to Analysts. Should You Sell CRWV Now? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. McCormick touched its 52-week high of $86.24 on Mar. 10 and is currently trading 15.1% below that peak. Meanwhile, MKC stock has dropped nearly 10% over the past three months, notably underperforming the Dow Jones Industrial Average's ($DOWI) 1.4% uptick during the same time frame. McCormick's performance has remained lackluster over the longer term as well. MKC stock has dropped 4% on a YTD basis and gained 6.7% over the past year, underperforming Dow's marginal 88 bps dip in 2025 and 8.6% gains over the past 52 weeks. To confirm the downturn, MKC stock has traded consistently below its 200-day moving average and mostly below its 50-day moving average since early April. McCormick's stock prices observed a marginal dip after the release of its Q1 results on Mar. 25. The company experienced a 2% growth in volumes, but it was mostly offset by currency headwinds, leading to its net sales growing by a modest 17 bps year-over-year to $1.6 billion, which missed the consensus estimates by 38 bps. Meanwhile, its adjusted EPS for the quarter decreased 4.8% year-over-year to $0.60, falling short of Street expectations by 6.3%. On a positive note, for the full fiscal 2025, the company expects to observe a low-single-digit growth in volumes and a gradual improvement in demand from China. While McCormick has marginally underperformed its peer Hormel Foods Corporation's (HRL) 3.9% drop on a YTD basis, it has significantly outpaced HRL's marginal 69 bps dip over the past 52 weeks. Among the 14 analysts covering the MKC stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $84.87 suggests a 15.9% upside potential from current price levels. On the date of publication, Aditya Sarawgi 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
Yahoo
13-05-2025
- Business
- Yahoo
1 S&P 500 Stock with Competitive Advantages and 2 to Keep Off Your Radar
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition. Picking the right S&P 500 stocks requires more than just buying big names, and that's where StockStory comes in. That said, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist. Market Cap: $20.45 billion The classic red Heinz ketchup bottle's competitor, McCormick (NYSE:MKC) sells food-flavoring products like condiments, spices, and seasoning mixes. Why Are We Cautious About MKC? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Anticipated sales growth of 2.2% for the next year implies demand will be shaky Free cash flow margin dropped by 5.4 percentage points over the last year, implying the company became more capital intensive as competition picked up McCormick is trading at $76.22 per share, or 24.4x forward P/E. If you're considering MKC for your portfolio, see our FREE research report to learn more. Market Cap: $139.4 billion Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE:DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics. Why Are We Wary of DHR? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Overall productivity fell over the last two years as its plummeting sales were accompanied by a decline in its adjusted operating margin Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.2 percentage points At $194.82 per share, Danaher trades at 24.7x forward P/E. To fully understand why you should be careful with DHR, check out our full research report (it's free). Market Cap: $41.13 billion Spun off as an independent company from PepsiCo, Yum! Brands (NYSE:YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill. Why Does YUM Stand Out? Fast expansion of new restaurants indicates an aggressive approach to attacking untapped market opportunities Disciplined cost controls and effective management resulted in a strong two-year operating margin of 32.1% Strong free cash flow margin of 18.9% enables it to reinvest or return capital consistently Yum! Brands's stock price of $147.94 implies a valuation ratio of 24x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
3 Reasons to Sell MKC and 1 Stock to Buy Instead
McCormick trades at $74.11 per share and has stayed right on track with the overall market, losing 5.4% over the last six months while the S&P 500 is down 5.4%. This was partly driven by its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in McCormick, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it's free. Even with the cheaper entry price, we're swiping left on McCormick for now. Here are three reasons why MKC doesn't excite us and a stock we'd rather own. The classic red Heinz ketchup bottle's competitor, McCormick (NYSE:MKC) sells food-flavoring products like condiments, spices, and seasoning mixes. When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business's performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations. The demand for McCormick's products has generally risen over the last two years but lagged behind the broader sector. On average, the company's organic sales have grown by 2.9% year on year. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect McCormick's revenue to rise by 2.2%, close to its 1.9% annualized growth for the past three years. This projection is underwhelming and suggests its newer products will not lead to better top-line performance yet. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, McCormick's margin dropped by 5.4 percentage points over the last year. If its declines continue, it could signal increasing investment needs and capital intensity. McCormick's free cash flow margin for the trailing 12 months was 9.6%. McCormick isn't a terrible business, but it doesn't pass our bar. Following the recent decline, the stock trades at 23.9× forward price-to-earnings (or $74.11 per share). This multiple tells us a lot of good news is priced in - we think there are better investment opportunities out there. We'd recommend looking at the most entrenched endpoint security platform on the market. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
McCormick (NYSE:MKC) Declares US$0.45 Quarterly Dividend
McCormick has seen several important developments recently, including its announcement of a quarterly dividend of $0.45 and the continuation of its share buyback program. Despite these positive steps, the company's stock price fell 3% over the last quarter. This decline aligns with broader market trends as the S&P 500 dropped 12% amid U.S.-China trade tensions and heightened volatility. McCormick's flat earnings per share and slight dip in net income year-over-year may have added weight to the market's overall downward momentum, contrasting with technological sectors leading gains. Every company has risks, and we've spotted 1 warning sign for McCormick you should know about. Outshine the giants: these 24 early-stage AI stocks could fund your retirement. The recent announcement of McCormick's quarterly dividend of US$0.45 and the ongoing share buyback program are seen as efforts to stabilize investor confidence amidst a volatile market. Despite these efforts, McCormick's stock price experienced a 3% decline over the last quarter, reflecting broader market trends, as indicated by the S&P 500's 12% decrease. This downturn suggests investor concerns may outweigh the positive signals from the company's dividend and buyback news. However, over the longer term, McCormick's total return, including dividends and share price changes, marked a 3.54% increase over the past five years. Compared to the broader market, McCormick's performance in the past year was on par with the US market's 3.8% decline. However, it outpaced the US Food industry's 10.2% drop in the same period. The company's initiatives in brand marketing and e-commerce may potentially support revenue and earnings growth, although risks such as consumer uncertainty and tariffs remain. Analysts have forecasted McCormick's future PE ratio to decrease by 2028, with expected earnings of about US$1 billion. Current share price movement indicates a slight 1.8% discount relative to the consensus price target of US$83.77. Investors might interpret this as a sign that the company's stock is approximately aligned with analysts' fair value estimates. Get an in-depth perspective on McCormick's performance by reading our balance sheet health report here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:MKC. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
01-04-2025
- Business
- Yahoo
1 Consumer Stock with Exciting Potential and 2 to Turn Down
Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. Unfortunately, the sector hasn't provided much protection lately as it pulled back by 9.7% over the past six months. This drop was worse than the S&P 500's 2% loss. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. With that said, here is one resilient consumer stock we've added to our cart and two we're passing on. Market Cap: $22.07 billion The classic red Heinz ketchup bottle's competitor, McCormick (NYSE:MKC) sells food-flavoring products like condiments, spices, and seasoning mixes. Why Is MKC Not Exciting? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Anticipated sales growth of 2.2% for the next year implies demand will be shaky Capital intensity has ramped up over the last year as its free cash flow margin decreased by 5.4 percentage points McCormick's stock price of $82.31 implies a valuation ratio of 26.3x forward price-to-earnings. If you're considering MKC for your portfolio, see our FREE research report to learn more. Market Cap: $143.7 million Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE:MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods. Why Do We Pass on MED? Products have few die-hard fans as sales have declined by 26.6% annually over the last three years Sales were less profitable over the last three years as its earnings per share fell by 76.5% annually, worse than its revenue declines Capital intensity has ramped up over the last year as its free cash flow margin decreased by 10.3 percentage points At $13.48 per share, Medifast trades at 45.7x forward price-to-earnings. Read our free research report to see why you should think twice about including MED in your portfolio, it's free. Market Cap: $101.5 billion Best known for its Marlboro brand of cigarettes, Altria (NYSE:MO) offers tobacco and nicotine products. Why Are We Fans of MO? Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 69.9% Disciplined cost controls and effective management resulted in a strong two-year operating margin of 55.7% Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends Altria is trading at $60.10 per share, or 11.2x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it's free. The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we're here to help you pick them. Get started by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
