Here's Why Smucker (SJM) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Smucker (SJM)
Headquartered in Orrville, OH, the J.M. Smucker Company is a leading marketer and manufacturer of consumer food and beverage products and pet food and pet snacks in North America. Although majority of the company’s operations are concentrated in the United States, it also operates on an international basis.
SJM is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 12.7X for the current fiscal year compared to the Food - Miscellaneous industry's P/E of 17.4X. Additionally, SJM has a PEG Ratio of 2 and a Price/Cash Flow ratio of 9.4X. Value investors should also note SJM's Price/Sales ratio of 1.6X.
A company's earnings performance is important for value investors as well. For fiscal 2024, seven analysts revised their earnings estimate higher in the last 60 days for SJM, while the Zacks Consensus Estimate has increased $0.08 to $9.60 per share. SJM also holds an average earnings surprise of 7.5%.
SJM should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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The J. M. Smucker Company (SJM) : Free Stock Analysis Report
