RECENT Consumer Staples RESEARCH
So far this year, food stocks have largely disappointed investors, and the outlook for the rest of the year appears no better. Stock prices for food manufacturers have been on a downtrend, underperforming the S&P 500 Index (SPX-INDEX) on a YTD (year-to-date) basis, as the graph below shows. As of July 3, Campbell Soup (CPB), General Mills (GIS), Conagra Brands (CAG), J. M. Smucker (SJM), Kellogg (K), and Kraft Heinz (KHC) have fallen 13.7%, 10.7%, 10.2%, 7.7%, 6.7%, and 3.3%, respectively, YTD. The S&P 500 Index has returned 8.5% during the same period.
So far this year, food stocks have largely disappointed investors, and the outlook for the rest of the year appears no better.
This pre-earnings series on PepsiCo’s upcoming 2Q17 results will discuss trends in the company’s sales and earnings as well as analyst expectations.
Conagra Brands (CAG) reported mixed fiscal 4Q17 results on June 29, 2017. After the earnings release, CAG stock fell 4.3% in two trading days.
Constellation Brands (STZ) stock rose 5.0% on June 29 in reaction to the company’s strong earnings for fiscal 1Q18.
Illinois-based Walgreens Boots Alliance (WBA) reported results for 3Q17 on Thursday, June 29, 2017.
RBC Capital analysts William Kirk and Shiyao Ling said that Supervalu’s sell-off following the Amazon and Whole Foods merger announcement is an overreaction.
J.M. Smucker is part of an industry that’s reeling under the pressure of a weak consumer uptake due to a shift to healthy foods.
In this series, we’ll explore the price movements of five soft commodities—coffee, sugar, cocoa, orange juice, and cotton. Arabica coffee, which is considered superior in flavor and quality to Robusta coffee, has seen its futures price falling during the past six months.
It’s surprising to see Costco (COST) stock being the worst hit from Amazon’s (AMZN) announcement about acquiring Whole Foods (WFM) on June 16.
Constellation Brands (STZ) is scheduled to announce its fiscal 1Q18 results on June 29, 2017. Its fiscal 1Q18 ended on May 31, 2017.
Walgreens Boots Alliance is scheduled to release its fiscal 3Q17 results on June 29, 2017. The pharmacy giant is expected to report a 10.2% year-over-year rise in its earnings per share.
Conagra (CAG) has fallen about 5% YTD as of June 21, 2017. Much of this decline has stemmed from the company’s failed bid to acquire Pinnacle Foods.
Spice and flavoring giant McCormick (MKC) plans to announce its fiscal 2Q17 results on June 29, 2017. Year-to-date, McCormick stock has generated an 8.3% return, beating its peers.
General Mills (GIS) stock has fallen 7.5% on a YTD (year-to-date) basis and has underperformed its peers in terms of price appreciation as of June 19, 2017.
Arabica front-month futures hit a fresh low last week (ended June 16), falling to $1.24 per pound from $1.26 per pound one week previously.
Stock prices of grocers and mass merchandisers saw sharp falls after Amazon’s announcement that it has entered a definitive agreement to acquire Whole Foods (WFM).
Amazon (AMZN) announced on Friday, June 16, 2017, that it has entered into a definitive agreement to acquire Whole Foods Market (WFM) for $13.7 billion in an all-cash transaction.
Beverage giants Coca-Cola (KO) and PepsiCo (PEP) have delivered better total returns than the S&P 500 Index on a YTD (year-to-date) basis.
Weak volume trends due to the consumer shift toward fresh and wholesome foods and delayed tax refunds hurt major food manufacturers in 1Q17.