Latest news with #TheJ.M.SmuckerCompany
Yahoo
21-07-2025
- Business
- Yahoo
J.M. Smucker Co. (SJM) Rose on Continued Challenges at Hostess
Ariel Investments, an investment management company, released its 'Ariel Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was a volatile period. Stocks fell sharply in early April following the 'Liberation Day' tariff announcement, pushing the market close to bear market territory. Later, the pause in plans led to a strong recovery. Excitement for artificial intelligence (AI) stocks reignited, with positive economic data and strong corporate earnings driving U.S. indices to new all-time highs. Growth stocks outperformed value stocks, and large caps continued to outperform their small-cap counterparts. Against this backdrop, Ariel Fund returned 6.96% in the quarter, lagging behind both the Russell 2500 Value Index's +7.29% return and exceeding the Russell 2000 Value Index's +4.97% gain. For more information on the fund's top picks in 2025, please check its top five holdings. In its second quarter 2025 investor letter, Ariel Fund highlighted stocks such as The J. M. Smucker Company (NYSE:SJM). The J. M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products. The one-month return of The J. M. Smucker Company (NYSE:SJM) was 9.07%, and its shares lost 8.66% of their value over the last 52 weeks. On July 18, 2025, The J. M. Smucker Company (NYSE:SJM) stock closed at $106.16 per share, with a market capitalization of $11.326 billion. Ariel Fund stated the following regarding The J. M. Smucker Company (NYSE:SJM) in its second quarter 2025 investor letter: "Leading manufacturer of consumer food products, The J. M. Smucker Company (NYSE:SJM) also declined during the period. Quarterly earnings benefitted from the company's legacy businesses anchored by the Uncrustables brand and coffee portfolio, however continued challenges at Hostess weighed on results. Meanwhile, management delivered disappointing fiscal year 2026 guidance due to expected profit declines driven by inflation related to higher expected coffee costs, tariffs and continued weakness at Hostess. SJM remains focused on stabilizing revenue and management believes SKU and display rationalization alongside marketing investments will help. Longer-term, we continue to believe SJM's portfolio of iconic and emerging foods brands, coupled with its broad based innovation and productivity agenda, supports an attractive total shareholder return opportunity." A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. The J. M. Smucker Company (NYSE:SJM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held The J. M. Smucker Company (NYSE:SJM) at the end of the first quarter, compared to 37 in the previous quarter. While we acknowledge the potential of The J. M. Smucker Company (NYSE: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. In another article, we covered The J. M. Smucker Company (NYSE:SJM) and shared the list of consumer defensive stocks to buy. Ariel Fund highlighted The J. M. Smucker Company (NYSE:SJM) last quarter, citing strong earnings beat and a raised FY25 EPS outlook as key drivers of its performance. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
16-06-2025
- 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
16-06-2025
- 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
14-05-2025
- Business
- Yahoo
The J. M. Smucker Company (SJM): Among the Best Dividend Growth Stocks with High Yields
We recently published a list of the . In this article, we are going to take a look at where The J. M. Smucker Company (NYSE:SJM) stands against other best dividend growth stocks. Dividend-paying stocks have been gaining popularity among investors due to their long-term advantages. According to Jeremy Zirin, who leads the US equity team for private clients at UBS Asset Management, companies with a consistent track record of increasing dividends are a smart choice for investors seeking a balanced approach in the current market environment. When markets dipped in April after President Donald Trump announced new tariff policies, investors gravitated toward high-yield dividend stocks. However, as trade tensions began to ease and negotiations progressed, markets recovered. Stocks surged particularly after the US and China agreed to temporarily reduce tariffs. He made the following comment about dividend stocks: 'The higher-dividend-yielding strategies tend to do better when markets are in real turmoil and declining, but if there's more chop, more volatility and potentially upside … you don't want to be overly defensive.' Historically, companies that consistently increase their dividends have tended to be less volatile and often delivered stronger returns than the broader market, including benchmarks like the S&P Equal Weight Index. According to a report by Guggenheim, from May 2005 through December 2024, firms that either initiated or raised their dividends generated an average annual return of 10.5%. In contrast, companies that cut or suspended their payouts posted just 5.5% annually. The overall market returned 10.4% during this timeframe, slightly behind the dividend growers. The report also highlighted that dividend growth strategies have historically performed well in both rising and falling markets, making them an attractive option for investors focused on long-term gains and downside protection. According to a report by S&P Global, the growth of global dividend payments had been slowing since the post-COVID recovery, but that trend reversed last year. In 2024, the growth rate unexpectedly accelerated to 8%, with shareholders receiving approximately $180 billion more than the previous year. This increase came as a surprise given the persistent geopolitical and economic challenges. The report also highlighted that several sectors and regions saw record dividend initiations, including the US technology, media, and telecom (TMT) sector, banks in Italy and Spain, Japan's automotive industry, and a general rise in payouts from Mainland China. Even with extreme price fluctuations, dividend payments from the oil and gas sector remained strong. Looking ahead, the report suggested that this high level of dividends is likely to hold steady, with global payouts expected to remain at $2.3 trillion in 2025. With growing investor appetite for dividend-paying stocks, many companies have responded by gradually increasing their dividend payouts. A report by Janus Henderson revealed that global dividend payments reached a record $1.75 trillion in 2024, reflecting a 6.6% rise on an underlying basis. The overall growth rate came in at 5.2%, slightly held back by a drop in special one-time dividends and the effect of a stronger U.S. dollar. Out of the 49 countries covered in the report, 17—including major economies such as the US, Canada, France, Japan, and China—posted record-high dividend levels. In total, 88% of companies either raised or held their dividends steady over the year. A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. For this list, we screened for dividend stocks with yields higher than 3% as of May 13. From this group, we further refined our selection criteria by identifying stocks with a dividend growth streak of 10 years or more. The stocks are ranked in ascending order of their dividend yields. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Dividend Yield as of May 13: 3.87% The J. M. Smucker Company (NYSE:SJM) is an American food company, headquartered in Ohio. The company manufactures a wide range of food and beverage products. In its recent quarterly update, the company emphasized the importance of its procurement strategies amid rising commodity prices, especially green coffee, to help safeguard margins. The company also pointed to one-time factors, such as trademark impairments and supply chain disruptions, that negatively affected its overall operating performance and contributed to mixed results. For fiscal Q3 2025, The J. M. Smucker Company (NYSE:SJM) reported $2.2 billion in revenue, a 2% year-over-year decline. It posted a net loss of $6.22 per diluted share, mainly due to noncash impairment charges tied to its Sweet Baked Snacks business. However, on an adjusted basis, earnings per share rose 5% to $2.61. Gross profit increased by $55 million, or 7%, thanks to improved pricing, cost efficiencies, and benefits from the Hostess Brands acquisition, though lower volumes and recent divestitures partially offset these gains. Though The J. M. Smucker Company (NYSE:SJM) is a strong dividend company, its cash position took a hit this quarter. Free cash flow dropped significantly to $151.3 million, down 39.3% from the prior year, due to timing differences in tax payments and increased working capital needs. Operating cash flow also declined, highlighting the need for more disciplined cash management going forward. Despite these challenges, SJM remains appealing to income-focused investors, supported by a 23-year streak of dividend growth. Currently, it offers a quarterly dividend of $1.08 per share and has a dividend yield of 3.87%, as of May 13. Overall, SJM ranks 15th on our list of the best dividend growth stocks with high yields. While we acknowledge the potential of SJM as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than SJM but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . 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 .
Yahoo
26-04-2025
- Business
- Yahoo
The J. M. Smucker Company (SJM): One of the Growing Dividend Stocks with Low PE Ratios
We recently published a list of the . In this article, we are going to take a look at where The J. M. Smucker Company (NYSE:SJM) stands against other growing dividend stocks. Value stocks are enjoying a rare period of strength amid this year's broader market downturn. With earnings season approaching, it remains to be seen whether their recent edge over high-growth stocks will hold. The S&P Value Index—which includes sectors like banking, consumer staples, and healthcare, featuring companies that trade at relatively low valuations—has fallen around 9% this year. That's a smaller drop compared to the more than 15% decline seen in the growth-focused counterpart. Concerns over steep valuations in the tech sector, coupled with a wave of risk aversion triggered by tariffs, have pushed investors to shift from growth to value. While similar shifts haven't lasted long in the past, some investors believe that this time could be different, as expectations for value-oriented firms are modest enough that they may exceed them when earnings reports begin next month. Dan Morgan, senior portfolio manager at Synovus Trust, made the following comment about value investing: 'The bar has been set pretty low for value stocks compared to the uncertainty surrounding growth names and their ability to deliver on earnings estimates. If value can at least match or slightly beat expectations, the runway is clear for them.' According to data from Bloomberg Intelligence, analysts are forecasting a 12% decline in first-quarter earnings for value companies compared to the same period last year, while growth companies are expected to post a 20% increase. Supporters of value stocks believe that these lower expectations are already factored into their relatively modest valuations. On the other hand, optimism surrounding growth stocks—particularly in the tech sector—has soared in recent years, largely driven by enthusiasm over advancements in artificial intelligence. Historically, value stocks have lagged behind. Over the past 20 years, the S&P 500 Value Index has only outperformed its growth counterpart five times on an annual basis. During that period, the value index climbed 202%, while the growth index surged by 600%. Michael O'Rourke, chief market strategist at JonesTrading Institutional Services, made the following statement: 'Growth is about 40% more expensive; this outperformance of value was very long overdue. Due to the incredible strength of the Magnificent Seven, too many investors crowded into growth thinking it won't correct.' Investors often turn to dividend stocks when looking at companies with lower valuations. Dan Lefkovitz, a strategist at Morningstar Indexes, pointed out that dividend-growth stocks—those known for consistently raising their payouts—have underperformed the broader market in 2024. He attributed this to a market that has largely been driven by a handful of fast-growing tech names. However, he also remarked that while dividend-paying stocks may trail during such growth-led rallies, they tend to hold up better during market downturns, as seen in 2022 and 2018. Companies that consistently raise their dividends are often both profitable and financially stable—traits that become especially important during times of economic downturn. A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. For this list, we focused on dividend-paying companies that have consistently paid dividends over the years and have also demonstrated a track record of increasing their payouts. From that group, we considered stocks with forward P/E ratios below 25, as of April 22. The stocks are ranked in ascending order of their P/E ratios. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of April 22: 11.24 The J. M. Smucker Company (NYSE:SJM) is an American food company, based in Ohio. The company manufactures a wide range of food and beverage products. On April 17, the company declared a quarterly dividend of $1.08 per share, which was in line with its previous dividend. Overall, it has raised its payouts for 23 consecutive years. The stock's dividend yield on April 22 came in at 3.67%. In fiscal Q3 2025, The J. M. Smucker Company (NYSE:SJM) posted revenue of $2.2 billion, reflecting a 2% year-over-year decline. The company reported a net loss of $6.22 per diluted share, mainly due to noncash impairment charges tied to its Sweet Baked Snacks unit. On an adjusted basis, earnings per share climbed 5% to $2.61. Gross profit increased by $55 million, or 7%, supported by stronger pricing, lower costs, and contributions from the Hostess Brands acquisition. These gains, however, were partially weighed down by softer sales volumes and the effects of recent business divestitures. The J. M. Smucker Company (NYSE:SJM) also reported a healthy cash position for the quarter, generating close to $240 million in operating cash flow. Free cash flow totaled $151.3 million, and the company returned $114.4 million to shareholders through dividend payments. Due to its solid cash position, SJM is one of the best growing dividend stocks on our list. Overall, SJM ranks 6th on our list of the best growing dividend stocks with low P/E ratios. While we acknowledge the potential of SJM as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than SJM but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . 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 .
