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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
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 B. Shares are currently trading at a forward P/E of 11.5X for the current fiscal year compared to the Food - Miscellaneous industry's P/E of 15.9X. Additionally, SJM has a PEG Ratio of 4 and a Price/Cash Flow ratio of 8.4X. Value investors should also note SJM's Price/Sales ratio of 1.4X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.17 to $10.05 per share. SJM has an average earnings surprise of 11.7%.
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
This article originally published on Zacks Investment Research (zacks.com).