Why Smucker (SJM) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and 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 B. Shares are currently trading at a forward P/E of 12.8X for the current fiscal year compared to the Food - Miscellaneous industry's P/E of 17.1X. 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, three analysts revised their earnings estimate higher in the last 60 days for SJM, while the Zacks Consensus Estimate has increased $0.01 to $9.55 per share. SJM also holds an average earnings surprise of 7.5%.
Investors should take the time to consider SJM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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The J. M. Smucker Company (SJM) : Free Stock Analysis Report
