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TreeHouse Foods’ Stock Has Fallen 12% since 3Q15 Earnings

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Stock fell since last quarter’s earnings

TreeHouse Foods (THS) stock has fallen close to 12% since the last quarter’s earnings. It reported its 3Q15 results on November 5, 2015, and shares rose, closing at $86.81 that day. The stock hasn’t risen much so far in 2016 and has fallen 8% in the last two months as of February 5, 2016. In 2015, the stock fell as much as 7%, closing at $76.19 on February 5, 2015.

The stock price movement on a year-to-date and month-to-date basis is -2.8% and -3.9%, respectively. It’s trading at -3.9% on a five-day trailing basis. The stock is trading 5.7% and 2.7% below its 100-day and 50-day moving averages, respectively. It is, however, trading 3.6% above its 20-day moving average.

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Outlook for 2016

TreeHouse Foods management mentioned its 2016 preliminary outlook last month. It anticipates full-year 2016 earnings of $2.95–$3.10 per fully diluted share upon completion of the acquisition of ConAgra’s private brands business in the first quarter of 2016. The company will provide further details about its outlook for 2016 in the upcoming 4Q15 earnings release.

TreeHouse Foods (THS) chairman, president, and chief executive officer Sam K. Reed stated, “We will be true to our strategy, established at our founding in 2005, to drive shareholder value by building an industry leading portfolio of private label products that offer our customers value without compromise.”

Stock performance of peers

TreeHouse Foods’ peers in the industry include B&G Foods (BGS), Kraft Heinz (KHC), and Pinnacle Foods (PF). BGS has risen 3.7% so far in 2016, while Pinnacle has fallen 1.6%. There wasn’t much stock price movement for KHC so far in 2016. It closed at $35.80, $72.70, and $41.50, respectively, on February 5, 2016. Peer stocks are trading below key moving averages.

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 2.2% of its portfolio in KHC. The PowerShares DWA Consumer Staples Momentum ETF (PSL) invests 2.3% of its portfolio in PF.

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