Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Smucker (SJM - Free Report) The J. M. Smucker Company, headquartered in Orrville, Ohio, is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. The company's operations are primarily U.S.-based, with additional international activities, principally in Canada.
Since being added to the Focus List on August 29, 2024 at $114.73 per share, shares of SJM have increased 2.89% to $118.05. The stock is currently a #3 (Hold) on the Zacks Rank.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.25 to $9.95. SJM boasts an average earnings surprise of 1.5%.
Moreover, analysts are expecting SJM's earnings to grow 8.7% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Smucker (SJM - Free Report) The J. M. Smucker Company, headquartered in Orrville, Ohio, is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. The company's operations are primarily U.S.-based, with additional international activities, principally in Canada.
SJM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.64; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.25 to $9.95 per share. SJM boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SJM should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue 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, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Smucker (SJM - Free Report) The J. M. Smucker Company, headquartered in Orrville, Ohio, is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. The company's operations are primarily U.S.-based, with additional international activities, principally in Canada.
SJM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Staples stock. SJM has a Momentum Style Score of A, and shares are up 1% over the past four weeks.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.18 to $9.95 per share. SJM also boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SJM should be on investors' short list.
Key Takeaways SJM raised its quarterly dividend 2% to $1.12, marking 25 straight fiscal years of growth.SJM generated $1.2B in fiscal 2026 free cash flow, paid $465M in dividends and repaid $720M of debt.SJM balances investments, debt reduction and shareholder returns through disciplined capital allocation. The J.M. Smucker Co. (SJM - Free Report) continues to reinforce the shareholder-friendly capital allocation strategy, underscoring confidence in its cash-generating ability despite an evolving consumer and cost environment. The latest dividend hike also extends the company's long-standing record of rewarding investors.
The company announced a 2% increase in its quarterly dividend to $1.12 per common share from $1.10. The dividend will be paid on Sept. 1, 2026, to its shareholders of record as of Aug. 14. The latest increase marks the 25th consecutive fiscal year of dividend growth, highlighting SJM's consistent focus on returning capital to its shareholders through regular payouts.
The dividend announcement comes on the back of a year marked by solid cash generation. In fiscal 2026, The J.M. Smucker generated $1.5 billion in operating cash flow and $1.2 billion in free cash flow, while returning approximately $465 million to its shareholders through dividends. In fiscal 2026, the company also repaid $720 million of debt, reflecting a balanced approach toward strengthening its balance sheet while maintaining shareholder distributions.
Operationally, the business ended fiscal 2026 on a strong note. Fiscal fourth-quarter net sales increased 6% year over year to $2.3 billion, while adjusted earnings per share climbed 20% to $2.77. Growth was supported by pricing actions, resilient demand across key categories and improved profitability, leading to stronger operating cash flow. For fiscal 2027, SJM projects adjusted earnings per share of $9.75-$10.25 and approximately $1 billion in free cash flow, providing continued financial flexibility to support investments, debt reduction and shareholder returns.
Although fiscal 2027 sales are projected to decline 3-4% due to lower coffee pricing and softer volume/mix, the company's strong cash generation, disciplined debt reduction and consistent dividend growth underscore the resilience of its business model. The latest dividend increase reinforces confidence in SJM's ability to sustain shareholder returns while navigating commodity cost fluctuations and evolving consumer demand.
The J.M. Smucker’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 6.5% over the past year, outperforming the broader Consumer Staples sector’s growth of 1.3% and the industry’s decline of 21.7%. However, the figure is down from the S&P 500’s 21.2% growth during the same period.
SJM Stock's Past Year Performance
Image Source: Zacks Investment Research
Is SJM a Value Play Stock?The J.M. Smucker currently trades at a forward 12-month P/E ratio of 11.09, which is lower than the industry average of 14.62. This suggests the stock is trading at a modest discount relative to its peers.
SJM P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderUnited Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2 (Buy). Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
Hormel Foods Corporation (HRL - Free Report) develops, processes and distributes various meat, nuts and other food products to foodservice, convenience store and commercial customers in the United States and internationally. It carries a Zacks Rank of 2 at present. HRL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
The Zacks Consensus Estimate for Hormel Foods’ current fiscal-year sales and earnings indicates growth of 1.4% and 9.5%, respectively, from the prior-year reported levels.
When you are buying a dividend stock to hold for five years, the flashy growth names matter less than a simple question: Will this company still be selling its products and paying its dividend no matter what the economy does?
Consumer goods companies are built for exactly that kind of durability, because people keep buying groceries and pantry staples in booms and recessions alike.
The three names below are not the most talked-about stocks on the internet, and that is part of the appeal. Each pairs a long dividend history with a real plan for the years ahead.
Image source: Getty Images.
1. Hormel Foods: A Dividend King in the middle of a comeback Hormel Foods (HRL 1.25%) is one of the most reliable dividend payers in the entire market. It has paid an uninterrupted quarterly dividend since going public in 1928 and raised that payout for decades, earning it Dividend King status. (A Dividend King is any company that has raised its annual dividend for 50 or more consecutive years.) The yield today sits comfortably above the market average, which is unusual for a company this steady.
There is also a structural reason to trust the dividend: The Hormel Foundation owns nearly half the company and depends on those payments to fund its charitable work, so cutting the dividend is close to unthinkable.
The business itself is in the middle of a turnaround it calls Transform and Modernize, a mix of cost cuts and investment in manufacturing and technology aimed at lifting profits. It is working. Hormel has posted several straight quarters of organic sales growth; its Planters nut business is back on track; and it keeps leaning into the protein and snacking trends with brands like Spam, Skippy, and Applegate. The risk to watch is that its payout ratio has crept high after a rough stretch, so the turnaround needs to keep delivering for the dividend to keep growing at a healthy pace.
Today's Change
(
-1.25
%) $
-0.32
Current Price
$
25.39
2. McCormick: The quiet toll taker on flavor McCormick (MKC 2.27%) may be the most boring great business in your grocery store, and I mean that as a compliment. It sells the spices, seasonings, and condiments that go into food everywhere, from the McCormick bottles in your cabinet to Frank's RedHot, French's, and Cholula, plus the flavorings it supplies behind the scenes to restaurants and packaged-food makers. That gives it a toll-taker quality: No matter which food trend wins, the flavor usually runs through McCormick.
For dividend investors, the track record speaks for itself. McCormick has raised its dividend for 40 straight years, and it recently pushed the payout up again. Its pricing power, built on trusted brands and tiny-ticket purchases people rarely trade down on, helps protect profits when costs rise. The catch is that this is a slow grower, so you are buying steadiness and rising income rather than rapid gains. Over a five-year hold, that trade can be well worth making.
Today's Change
(
-2.27
%) $
-1.20
Current Price
$
51.70
3. J.M. Smucker: Coffee, pet treats, and a breakout sandwich J.M. Smucker (SJM 1.72%) rounds out the group with a portfolio that spans at-home coffee like Folgers and Dunkin, pet snacks like Milk-Bone and Meow Mix, and its spreads business anchored by Jif and Smucker's. The standout, though, is Uncrustables, the frozen, crustless sandwich that has grown into one of the company's most important brands and still has room to run as it expands into more stores and channels.
Smucker's pays an above-average yield backed by a long dividend history, which suits a patient investor looking for income. The honest risk is the balance sheet, as the company took on debt for acquisitions and has had to write down the value of some brands. Management is focused on paying that debt down and leaning into its winners, so the next five years are partly a story of getting the financial house in order while Uncrustables and coffee do the heavy lifting.
Today's Change
(
-1.72
%) $
-1.96
Current Price
$
112.01
The takeaway for investors None of these three will double overnight, and that is the point. For a five-year hold, Hormel Foods, McCormick, and J.M. Smucker offer the combination that actually compounds wealth quietly: durable demand, long dividend track records, and real plans to keep improving. Reinvest those growing dividends, stay patient, and let these unglamorous businesses do what they do best.
, /PRNewswire/ -- The J.M. Smucker Co. (NYSE: SJM) today announced its Board of Directors approved an increase in the quarterly dividend from $1.10 to $1.12 per common share, an increase of two percent. The next dividend will be paid on Tuesday, September 1, 2026, to shareholders of record at the close of business on Friday, August 14, 2026. This increase marks the Company's 25th consecutive fiscal year of dividend growth, reflecting the Company's continued commitment to returning value to shareholders.
The J.M. Smucker Co. Forward-Looking Statement
This press release contains a forward-looking statement about dividends. This statement is made on the basis of the Company's views and assumptions as of this time, and the Company undertakes no obligation to update this statement unless required by law. This statement is not a guarantee of future performance, and actual events or results may differ materially from this statement. Investors should consult the Company's filings with the Securities and Exchange Commission (including the information set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2026) for information about certain factors that could cause such differences. Copies of these filings may be obtained by visiting the Company's website at jmsmucker.com.
About The J.M. Smucker Co.
At The J.M. Smucker Co., it is our privilege to make food people and pets love by offering a diverse family of brands available across North America. We are proud to lead in the coffee, peanut butter, fruit spreads, frozen handheld, sweet baked goods, dog snacks, and cat food categories by offering brands consumers trust for themselves and their families each day, including Folgers®, Dunkin'®, Café Bustelo®, Jif®, Uncrustables®, Smucker's®, Hostess®, Milk-Bone®, and Meow Mix®. Through our unwavering commitment to producing quality products, operating responsibly and ethically and delivering on our Purpose, we will continue to grow our business while making a positive impact on society. For more information, please visit jmsmucker.com.
The J.M. Smucker Co. is the owner of all trademarks referenced herein, except for Dunkin'®, which is a trademark of DD IP Holder LLC. The Dunkin'® brand is licensed to The J.M. Smucker Co. for packaged coffee products sold in retail channels, such as grocery stores, mass merchandisers, club stores, e-commerce and drug stores, and in certain away from home channels. This information does not pertain to products for sale in Dunkin'® restaurants.
J. M. Smucker offers compelling value at a 10.9x forward P/E and a 4% yield, well below its historical average. SJM expects fiscal 2027 net sales to decline 3%–4% but guides for 7%–12% adjusted EPS growth driven by cost controls and productivity gains. Uncrustables and Donettes remain key growth drivers, while coffee segment improvement and margin recovery are critical near-term catalysts.
Key Takeaways Uncrustables sales rose 8% in Q4 2026, its strongest growth rate of the year. The brand drives 40% of annual sales in J.M. Smucker's U.S. frozen handheld and spreads segment. Uncrustables added about 3 million households, while 27% penetration leaves room for further growth. The J.M. Smucker Co. (SJM - Free Report) has several established brands across coffee, frozen foods and pet food, but Uncrustables continues to stand out as one of the company's most important growth platforms. Rising household adoption, broader distribution and continued innovation have helped the brand strengthen its contribution across multiple businesses.
The momentum continued in the fourth quarter of fiscal 2026. Uncrustables net sales increased 8%, marking the brand's strongest quarterly growth rate of the fiscal year. The performance helped the U.S. Retail Frozen Handheld and Spreads segment deliver 1% net sales growth despite declines in Jif peanut butter and Smucker's fruit spreads. The brand also supported the Away From Home segment, where higher Uncrustables demand contributed to 15% net sales growth during the quarter.
Uncrustables has now grown into an approximately $1 billion annual sales brand. Around 75% of sales come from U.S. Retail, with the remaining 25% generated through Away From Home channels. Within the U.S. Retail Frozen Handheld and Spreads segment, Uncrustables accounts for 40% of annual net sales, highlighting its increasing importance to the company's portfolio.
The growth opportunity remains substantial. Uncrustables added approximately 3 million new households over the past year, yet household penetration is still only 27%, leaving ample room for expansion. To build on that momentum, The J.M. Smucker is broadening distribution and introducing new offerings. Beginning this summer, all Uncrustables varieties will be fridge-friendly and remain fresh in the refrigerator for up to five days. It has also introduced varieties containing 12 grams of protein to expand into breakfast and morning snacking occasions.
Uncrustables has become more than a successful brand. Its expanding consumer reach, product innovation and presence across both retail and Away From Home channels make it one of SJM's most important organic growth platforms.
SJM Stock Price Performance, Valuation & EstimatesShares of the Zacks Rank #3 (Hold) company have gained 5.6% over the past year against the industry’s decline of 21.9%.
SJM Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, SJM trades at a forward price-to-earnings ratio of 10.96, lower than the industry’s average of 14.55.
SJM Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SJM’s current and next fiscal-year earnings per share implies year-over-year growth of 8.7% and 6.9%, respectively.
Better-Ranked Stocks to ConsiderUnited Natural Foods, Inc. (UNFI - Free Report) , a major food wholesaler serving grocery retailers, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural’s current and next fiscal-year earnings per share suggests a year-over-year increase of 254.9% and 21.4%, respectively. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) , a maker of refrigerated prepared foods for retail and foodservice, carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Mama's Creations’ current and next fiscal-year EPS suggests growth of 73.3% and 46.2%, respectively, from the prior-year reported levels. MAMA delivered a trailing four-quarter earnings surprise of 129.2%, on average.
Hormel Foods Corporation (HRL - Free Report) , a global branded food company offering meat, protein and packaged food products, carries a Zacks Rank #2.
The Zacks Consensus Estimate for Hormel Foods’ current and next fiscal-year EPS calls for a year-over-year jump of 9.5% and 3.5%, respectively. HRL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
A month has gone by since the last earnings report for Smucker (SJM - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Smucker due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Smucker Q4 Earnings Beat Estimates, Sales Miss on Volume DipThe J. M. Smucker reported fourth-quarter fiscal 2026 results. Adjusted earnings were $2.77 per share, beating the Zacks Consensus Estimate of $2.65. Earnings increased 20% from the prior-year quarter, driven by higher pricing, increased adjusted gross profit, favorable SD&A expenses and lower interest expense.
Net sales were $2,268.1 million, up 6% year over year. However, the top line missed the Zacks Consensus Estimate of $2,271 million. Comparable net sales, excluding prior-year divestiture-related sales and favorable foreign currency exchange, increased 6%. Comparable net sales growth reflected a 10-percentage-point benefit from net price realization, mainly driven by higher pricing for coffee and sweet baked goods. This was partly offset by a 4-percentage-point decline in volume/mix, primarily due to decreases in coffee and sweet baked goods, partially mitigated by growth in Uncrustables sandwiches.
Adjusted gross profit increased 4% year over year to $835.3 million. The upside reflected higher net price realization, partially offset by increased costs, including commodity costs and tariffs, along with unfavorable volume/mix. The company incurred approximately $23 million in tariff expenses in the quarter, mainly impacting the U.S. Retail Coffee segment.
Adjusted operating income rose 14% to $482.1 million, reflecting increased adjusted gross profit and favorable SD&A expenses. Lower marketing spend and distribution costs more than offset higher general and administrative expenses.
Decoding SJM’s Q4 Segmental PerformanceU.S. Retail Coffee: Net sales increased 12% to $830.6 million, driven by higher pricing across the portfolio. Net price realization contributed 21 percentage points, while volume/mix declined 8 percentage points due to decreases in Dunkin’ and Folgers, partly offset by growth in Café Bustelo. Segment profit increased 1% to $214 million, as pricing gains and lower marketing spend mostly offset higher costs, including commodity costs and tariffs, and unfavorable volume/mix.
U.S. Retail Frozen Handheld and Spreads: Net sales rose 1% to $454.1 million. Net price realization added 2 percentage points, led by higher pricing for Uncrustables sandwiches and lower trade spend for Jif peanut butter. Volume/mix declined 2 percentage points, reflecting lower sales of Jif peanut butter and Smucker’s fruit spreads, partly offset by growth in Uncrustables. Segment profit surged 37% to $124.7 million, aided by lower marketing spend, higher pricing, lower costs, lapping equipment write-off charges and lower pre-production expenses tied to the new Uncrustables manufacturing facility.
U.S. Retail Pet Foods: Net sales increased 2% to $401.7 million. Pricing contributed 3 percentage points, driven by cat food and dog snacks, while volume/mix declined 2 percentage points due to weakness in dog snacks and the lapping of contract manufacturing sales related to divested pet food brands. Segment profit advanced 18% to $125.7 million, supported by higher pricing and lower marketing spend.
Sweet Baked Snacks: Net sales decreased 5% to $237.2 million. Excluding noncomparable sales related to the divestiture of certain Sweet Baked Snacks value brands, net sales declined 4%. Volume/mix reduced sales by 12 percentage points, mainly due to softness in snack cakes and breakfast products, partly offset by growth in donuts. Higher pricing contributed 8 percentage points. Segment profit rose 45% to $29 million, reflecting higher pricing and lower marketing expenses, partly offset by unfavorable volume/mix and higher costs. Management noted that the segment’s fourth-quarter sales exceeded expectations, aided by a faster-than-anticipated return to production following the February fire at its Emporia, KS, facility. Hostess Donettes grew net sales 13% in the quarter.
Away From Home: Net sales increased 15% to $228.3 million. Excluding favorable currency movements, sales rose 14%. Net price realization added 8 percentage points, mainly due to higher coffee pricing, while volume/mix contributed 6 percentage points, driven by increases in Uncrustables sandwiches, fruit spreads and coffee. Segment profit climbed 21% to $55.3 million, benefiting from higher pricing and favorable volume/mix, partly offset by higher costs. The company also began presenting Away From Home as a reportable segment, reflecting the business’s increased scale and strength.
SJM’s Financial Health Snapshot & GuidanceThe company ended fiscal 2026 with cash and cash equivalents of $58.6 million and long-term debt, excluding the current portion, of roughly $6.4 billion. Total shareholders’ equity was $5.5 billion. Cash provided by operating activities totaled $579.2 million in the quarter. Free cash flow was $483.9 million. For fiscal 2026, free cash flow totaled about $1.16 billion. The company returned $464.7 million to shareholders through dividends and repaid $720 million of debt during the year.
Smucker issued its fiscal 2027 outlook. The company expects net sales to decline 3% to 4% year over year, primarily due to lower net price realization and unfavorable volume/mix. Management noted that the sales decline mainly reflects expectations for green coffee deflation, as the company plans to pass lower costs to consumers through pricing.
Adjusted earnings per share are expected in the band of $9.75-$10.25, implying year-over-year growth of 7-12%. The guidance assumes an adjusted gross profit margin of approximately 38%, SD&A expenses rising about 5%, net interest expense of nearly $345 million, an adjusted effective tax rate of 24.3% and weighted-average shares outstanding of 107 million.
Free cash flow is projected to be approximately $1 billion, with capital expenditures of $325 million. Management expects to pay down about $500 million of debt in fiscal 2027 and move toward a leverage ratio of around 3.0 net debt to adjusted EBITDA by the end of the fiscal year. The company expects volume/mix growth across its key platforms — Uncrustables, Cafe Bustelo, Meow Mix and Milk-Bone — in fiscal 2027.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
VGM ScoresAt this time, Smucker has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Smucker has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue 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, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Smucker (SJM - Free Report) The J. M. Smucker Company, headquartered in Orrville, Ohio, is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. The company's operations are primarily U.S.-based, with additional international activities, principally in Canada.
SJM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. SJM has a Growth Style Score of A, forecasting year-over-year earnings growth of 8.7% for the current fiscal year.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.15 to $9.95 per share. SJM also boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, SJM should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue 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, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Smucker (SJM - Free Report) The J. M. Smucker Company, headquartered in Orrville, Ohio, is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. The company's operations are primarily U.S.-based, with additional international activities, principally in Canada.
SJM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.69; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.13 to $9.95 per share. SJM also boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SJM should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Smucker (SJM - Free Report) The J. M. Smucker Company, headquartered in Orrville, Ohio, is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. The company's operations are primarily U.S.-based, with additional international activities, principally in Canada.
SJM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Staples stock. SJM has a Momentum Style Score of B, and shares are up 13.4% over the past four weeks.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.14 to $9.96 per share. SJM boasts an average earnings surprise of +1.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SJM should be on investors' short list.
John Rogers, founder of Ariel Investments, built his reputation on patient, long-horizon value investing in quality small and mid-cap businesses that are temporarily unloved or misunderstood. Rogers prefers durable franchises with strong brands, buys them when sentiment is poor, and holds through years of doubt while the market catches up. That approach can be powerful, but it does not automatically make every contrarian name appropriate for a retiree who needs income reliability, business predictability, and lower volatility.
The three stocks below all sit somewhere on Rogers’ contrarian spectrum. The question for a retirement-focused investor is narrower: which of these out-of-favor names actually pays investors to wait, and which requires nerves a 70-year-old may not want to test? We rank them from least to most appropriate for a retirement portfolio.
3. Envista Envista (NYSE: NVST | NVST Price Prediction) is the purest Rogers-style turnaround in this group, and that is precisely why it ranks last for a retiree. The dental products maker behind Nobel Biocare, Ormco, Kerr, DEXIS, and Spark has been a multi-year laggard, with shares down 37.9% over five years and closing at $27.02 on June 29, 2026.
The operating recovery is underway. Q1 FY2026 delivered adjusted EPS of $0.36 versus $0.31 expected, revenue of $705.5 million, up 14.4% year over year, and adjusted EBITDA growth of 25%. CEO Paul Keel called it a “good start to 2026” with 9.5% core revenue growth. Management authorized a fresh $300 million buyback through the end of 2029.
The retirement caveats are significant. Envista pays no dividend, trades at a trailing P/E near 66x (forward P/E 20x), and carries the highest beta of the three at 0.886. CEO Paul Keel also disposed of 12,811 shares at $23.43 on May 25, 2026. The contrarian thesis holds, while the income and stability profile remains weak.
2. MSG Entertainment Madison Square Garden Entertainment (NYSE: MSGE) owns truly irreplaceable assets: Madison Square Garden, Radio City Music Hall, the Beacon Theatre, the Chicago Theatre, the Christmas Spectacular, and the Rockettes. That is exactly the kind of durable franchise Rogers favors. Shares closed at $80.95 on June 29, 2026, up 99.9% over the past year and 50.2% year to date.
Q3 FY2026 was mixed. EPS came in at $0.11 versus $0.18 expected, missing by 38.89%, while revenue of $246.26 million edged estimates. SG&A rose 17%, and an $8.62 million restructuring charge pressured operating income. Cash grew to $323.65 million, up 264% year over year, and the prior quarter’s Christmas Spectacular drew 1.2 million tickets across 215 paid performances, the highest in 25 years. CEO James Dolan said demand “remains strong” with Harry Styles and Bon Jovi residencies on the books.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and J.M. Smucker didn't make the cut. Grab the names FREE today.
For a retiree, the issues are familiar: no dividend, a trailing P/E of 79x, and exposure to discretionary consumer spending. Recent insider activity was largely RSU grants at $0.0, not open-market buying. The assets are iconic, but they generate no income for shareholders.
1. Smucker J.M. Smucker (NYSE: SJM) is the cleanest fit for a retirement portfolio in this trio. The brand stable includes Folgers, Dunkin’, Café Bustelo, Jif, Uncrustables, Smucker’s, Hostess, Milk-Bone, and Meow Mix. The company is a consumer-staples and pet-food cash machine that has been hated since the Hostess deal, precisely the kind of dislocation Rogers looks for.
Q4 FY2026 results were strong. Adjusted EPS of $2.77 beat the $2.64 estimate, net sales rose 5.8% to $2.27 billion, and free cash flow reached $483.9 million, up 61.9%. Full-year free cash flow hit $1.156 billion, up 41.6%. Management guided FY2027 adjusted EPS to $9.75 to $10.25. CEO Mark Smucker said the company is “entering fiscal year 2027 with meaningful momentum.”
For retirees, the income case is decisive. Smucker pays a $4.40 annual dividend yielding 3.8%, backed by a 27-plus-year quarterly payment history and steady raises (from $0.88 per quarter in 2020 to $1.10 in 2026). Beta is just 0.264, forward PE is 12x, and shares closed at $115.89 on June 29, 2026. Risks include Sweet Baked Snacks weakness (−5% in Q4), prior Hostess impairments, and recent post-vesting CEO disposal of roughly 25,677 shares near $115 in mid-June 2026. But the dividend, low volatility, and recurring grocery-aisle demand are exactly what a retiree’s portfolio needs.
The Rogers Playbook, Filtered for Retirement John Rogers’ patience pays best when the underlying business is durable enough that time is a friend. All three names fit some part of the contrarian template, but only Smucker pairs the unloved valuation with the income reliability and low beta that a retiree actually needs. Envista and MSG Entertainment can reward patient holders, yet without dividends and with higher cyclicality, they belong in the growth sleeve, not the income sleeve. For a retirement-focused investor seeking Rogers-style contrarian exposure, Smucker is the one that lets the tortoise win.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and J.M. Smucker didn't make the cut. Grab the names FREE today.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Smucker (SJM - Free Report) The J. M. Smucker Company, headquartered in Orrville, Ohio, is a leading marketer and manufacturer of branded food and beverage products and pet food and pet snacks in North America. The company's operations are primarily U.S.-based, with additional international activities, principally in Canada.
SJM, a #3 (Hold) stock, was added to the Focus List on August 29, 2024 at $114.73 per share. Since then, shares have increased 1.01% to $115.89.
For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.14 to $9.96. SJM boasts an average earnings surprise of 1.5%.
Earnings for SJM are forecasted to see growth of 8.9% for the current fiscal year as well.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
Good dividend stocks can be counted on to produce reliable, high-yield income for investors every quarter, or in some cases every month, no matter what the market does. This is particularly beneficial for retirees looking to supplement their income.
But the benefits of dividend stocks go beyond dividend income. Dividend stocks are one of the best ways to diversify your portfolio against more volatile growth and tech stocks or large-cap S&P 500 exchange-traded funds (ETFs).
That's because dividend stocks also boost your total return if you reinvest them back into the stock. Further, the best dividend stocks are typically from stable, established companies, often consumer staples, that tend to perform relatively well during market downturns.
Image source: Getty Images.
With markets near all-time highs and valuations elevated, investors who are nervous about a major sell-off should certainly consider adding dividend stocks to their portfolios. One of the best and most reliable is J.M. Smucker (SJM +2.21%).
Smucker offers 3.98% yield J.M. Smucker, or Smucker, is literally a household name, as its broad range of jams, spreads, coffees, snacks, and pet foods are in practically every food cabinet in America. Its brands include its namesake spreads, but also Folger's coffee, Hostess snacks, and Milk-Bone dog treats, to name a few.
Smucker is a textbook example of a consumer staple stock, as people buy its jars of jelly no matter what the economy is like. In fact, its low-cost basic food staples may be even more popular when times are tight.
Its stability and consistency make it a great dividend stock as Smucker has increased its dividend for 28 years straight. It currently pays out a quarterly dividend of $1.10 per share at a high yield of 3.98%.
Smucker stock has also performed well year to date, up 14%, beating the S&P 500. With the dividend reinvested, it's up 15%. It hasn't performed as well during the three-plus-year bull market, but it tends to underperform during bull markets and outperform during corrections. For example, in the 2022 bear market, it was up 20%.
Analysts are bullish Smucker is also coming off an excellent fiscal fourth quarter with sales up 6% and adjusted earnings rising 20% year over year. It ended the fiscal year, which ended on April 30, with $1.2 billion in free cash flow, up from $816 million the previous fiscal year. Free cash flow is a key indicator of how much cash flow the company has to maintain or raise its dividend.
Its outlook is also strong, prompting a slew of Wall Street analysts to raise Smucker's price target in recent weeks. The median price target is $125 per share, which suggests 12% upside.
Today's Change
(
2.21
%) $
2.48
Current Price
$
114.98
While net sales are anticipated to drop 3% to 4% in fiscal 2027, Smucker's earnings are projected to rise 7% to 12% as costs for its products, namely coffee, are expected to come down, providing deflationary savings.
Finally, Smucker stock is pretty cheap, trading at 11 times forward earnings. It all makes Smucker a great dividend stock and even more valuable during a market sell-off. It will offset the volatility elsewhere and help you sleep well in choppy markets.
The packaged-food aisle has become a graveyard for income stories, with GLP-1 drugs, private label, and tariffs squeezing every legacy brand. J.M. Smucker (NYSE:SJM | SJM Price Prediction) sits inside that storm with Folgers, Café Bustelo, Jif, Uncrustables, Milk-Bone, and Hostess on its shelves. For retirees, the question is simple: can the 3.78% yield survive the noise?
Dividend Snapshot Metric Value Annual Dividend $4.40 Dividend Yield 3.78% Consecutive Years of Increases 27+ Most Recent Quarterly Raise $1.08 to $1.10 (May 2026) Aristocrat/King Status No (gap in public record) Cash Flow Buries the GAAP Headline GAAP net income was negative $138.7 million in fiscal 2026, but that figure is polluted by the $980 million Hostess impairment. Cash tells the truer story.
Metric TTM Assessment Earnings Payout (Adj. EPS) ~48% Healthy FCF Payout ~40% Healthy Operating Cash Flow Coverage ~3.2x Strong Smucker generated $1.2 billion in free cash flow, up from $816.6 million, and returned $464.7 million via dividends. Adjusted EPS of $9.15 against a $4.40 dividend leaves comfortable cushion.
Leverage Is the Real Pressure Point Metric Value Assessment Debt-to-Equity ~1.93x Aggressive Net Debt-to-EBITDA 3.8x Elevated Interest Coverage (GAAP) 0.94x Tight Cash on Hand $58.6M Thin The Hostess deal saddled the balance sheet, and $381.2 million in interest expense nearly swallowed GAAP operating income. Management is actively deleveraging.
27 Straight Years of Raises Year Annual Dividend 2025 $4.36 2024 $4.28 2023 $4.16 2022 $4.02 2021 $3.78 Growth has slowed to roughly 2% annually, a clear signal management is preserving cash for debt paydown.
The CFO Spells Out the Capital Plan On the June 9 call, CFO Tucker Marshall said, “We want to support quarterly dividends and grow them where appropriate.” He added a concrete target: “We also plan to pay down an additional $500 million of debt to get down to around a 3x leverage profile by the end of this fiscal year.” Dividends rank above buybacks, which only come back after the leverage target is hit.
Verdict: Safe With Caveats Dividend Safety Rating: Safe. The $1.2 billion FCF cushion, $9.75 to $10.25 FY27 EPS guide, and explicit CFO commitment all support the payout. The asterisk is leverage and a guided 3% to 4% revenue decline next year. Smucker fits an income thesis if coffee deflation and Uncrustables keep cash flow above $1 billion. The bear case rests on Hostess deteriorating further and forcing another impairment cycle. For now, the check clears.
Key Takeaways SJM has durable growth platforms in Uncrustables, Cafe Bustelo and Away From Home. Uncrustables reached $1B in annual sales, added 3M households and has 27% penetration. Fiscal 2027 sales are expected to fall 3-4%, with snack and pet-food softness weighing. The J. M. Smucker Co. (SJM - Free Report) remains a balanced consumer staples story. Uncrustables, Cafe Bustelo and Away From Home give the company several durable growth platforms, while cash generation and coffee margin recovery support the earnings setup.
The offset is visibility. Fiscal 2027 sales are expected to decline, and softer spots in Sweet Baked Snacks and pet foods keep the investment case from becoming a cleaner growth story.
Why SJM Still Has Defensible BrandsSmucker’s portfolio spans coffee, spreads, frozen handheld sandwiches, pet foods and sweet baked goods. Key brands include Folgers, Dunkin’, Cafe Bustelo, Jif, Smucker’s, Uncrustables, Meow Mix, Milk-Bone and Hostess.
That breadth supports resilience because the company sells through food retailers, mass merchandisers, club stores, discount stores, online retailers, pet specialty stores and foodservice distributors. The Kraft Heinz Company (KHC - Free Report) and General Mills, Inc. (GIS - Free Report) remain relevant packaged-food peers, underscoring how scale brands and retail reach still matter in center-store categories.
How Smucker Is Building on UncrustablesUncrustables is Smucker’s clearest scalable growth platform. The brand reached $1 billion in annual sales, added about 3 million households over the past year and still has household penetration of only 27%.
The growth path is not limited to the retail freezer aisle. About 75% of brand sales come from U.S. Retail and 25% from Away From Home, while fridge-friendly offerings and breakfast sandwiches with 12 grams of protein expand usage occasions.
Why Cafe Bustelo Matters for SJMCafe Bustelo gives Smucker a faster-growing asset inside a mature at-home coffee market. The brand grew net sales 39% in fiscal 2026 within U.S. Retail Coffee and reached about $550 million in sales.
Distribution expansion in the Central and West Coast regions, differentiated roast profiles and appeal with Gen Z and Millennial consumers add runway. Smucker’s ambition to make Cafe Bustelo a top-four at-home coffee brand gives the coffee portfolio a more visible growth target.
What Smucker Gains From Away From HomeAway From Home now stands as a separate reportable segment, improving visibility into non-retail channels. In the fourth quarter of fiscal 2026, segment net sales rose 15%, or 14% excluding foreign currency, and segment profit increased 21%.
The segment serves schools, workplaces, lodging, healthcare, convenience stores and restaurants. Its leadership positions in frozen sandwiches, on-demand dispensed coffee and portion-control spreads help broaden demand beyond grocery shelves. Keurig Dr Pepper Inc. (KDP - Free Report) is a useful coffee-channel reference point, given Smucker’s exposure to at-home and away-from-home coffee formats.
What Could Hold SJM Back in 2027The fiscal 2027 outlook keeps the story measured. Net sales are expected to decline 3-4%, reflecting lower net price realization and a decline in volume/mix.
Sweet Baked Snacks remains the clearest execution challenge after fiscal 2026 segment sales fell 18% to $971.3 million. Pet foods is also uneven, with fiscal 2026 U.S. Retail Pet Foods sales down 4% to $1.6 billion as dog snacks and lapped contract manufacturing sales weighed on results.
Higher brand spending adds another watchpoint. Selling, distribution and administrative expenses are projected to rise about 5% in fiscal 2027, including marketing expense of 5.7% of net sales, so stronger volume conversion is needed to support leverage.
Image Source: Zacks Investment Research
How SJM Signals Fit the Investor SetupThe bottom line is that SJM has credible growth platforms, but investors still need to balance those assets against execution risk and a declining sales outlook. Coffee cost moderation and productivity savings are expected to support adjusted gross margin expansion to about 38%, while free cash flow is projected at about $1 billion.
Valuation also reflects a discount. SJM trades at 11.7X forward 12-month earnings, below 14.14X for its Zacks sub-industry, 16.91X for the Zacks sector and 21.76X for the S&P 500.
The stock currently carries a Zacks Rank #3 (Hold). Its current Style Scores include a Value Score of B and VGM Score of A, which are favorable under the Zacks framework, but the Rank remains the first screen because it reflects earnings estimate revision trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For SJM, that combination fits a neutral setup. The discounted valuation and brand platforms are positives, while fiscal 2027 sales pressure, snack instability and uneven pet recovery argue for measured expectations.
Key Takeaways SJM is leaning into foodservice, convenience formats, premium coffee and margin recovery. Away From Home sales rose 15% in Q4, driven by coffee, Uncrustables and foodservice demand. Fiscal 2027 sales are expected to fall 3-4%, with lower pricing and softer volume/mix weighing. The J. M. Smucker Company (SJM - Free Report) is trying to make its next phase less dependent on mature grocery categories. The company is leaning into foodservice channels, convenience-led formats, premium coffee and productivity-led margin recovery.
Fiscal 2027 sales are expected to decline 3% to 4%, so investors need proof priority platforms can offset softer demand elsewhere.
How SJM Is Expanding Beyond Retail ShelvesAway From Home is the clearest sign that Smucker is pushing beyond traditional retail shelves. The business serves schools, workplaces, lodging, healthcare, convenience stores and restaurants, giving SJM more ways to reach consumers.
The segment became separately reportable in fiscal 2026, signaling that it is now large enough to influence the company narrative. Fourth-quarter Away From Home sales rose 15%, driven by coffee, Uncrustables, fruit spreads and foodservice demand.
The Kraft Heinz Company (KHC - Free Report) is relevant because packaged food companies are also looking for growth beyond center-store exposure. Smucker’s channel mix gives investors another test of how legacy brands can find new occasions.
Why Smucker Is Betting on ConvenienceUncrustables is the lead example of Smucker’s convenience strategy. The brand reached $1 billion in annual sales, added about 3 million households over the past year and still has household penetration of only 27%.
The product strategy is built around more eating moments. Fridge-friendly Uncrustables can stay fresh in the refrigerator for up to five days, while breakfast varieties with 12 grams of protein extend the brand into morning usage.
Image Source: Zacks Investment Research
How Coffee Trends Favor SJM MarginsCafe Bustelo gives Smucker a faster-growing coffee platform inside a mature category. The brand grew net sales 39% in fiscal 2026 within U.S. Retail Coffee and reached about $550 million in sales.
Growth is supported by expansion in the Central and West Coast regions, differentiated roast profiles, innovation and marketing aimed at a broader audience while preserving its Latin roots. Management has also cited resonance with Gen Z and Millennial consumers.
Coffee also shapes the margin story. Green coffee deflation is expected to weigh on sales as lower costs are passed through, but it is expected to help profitability, with productivity actions supporting adjusted gross margin of about 38% in fiscal 2027. Tariffs remain a watchpoint because guidance does not assume impacts from new or changed tariffs.
Where Smucker Still Faces Demand FrictionNot every category is participating equally. Sweet Baked Snacks remains a stabilization project after fiscal 2026 segment sales fell 18% and segment profit declined nearly 56%.
Pet foods also remain uneven. Cat food has momentum, but dog snacks and the lapping of contract manufacturing sales tied to divested pet food brands weighed on fiscal 2026 U.S. Retail Pet Foods sales.
General Mills, Inc. (GIS - Free Report) is a useful comparison because it also has exposure to packaged foods and pet. For SJM, the key issue is whether pet can move from selective improvement to broader volume support.
What SJM Spending Says About PrioritiesSmucker is putting more money behind the brands it wants to lead the next phase. Selling, distribution and administrative expenses are projected to rise about 5% in fiscal 2027, with marketing expense expected at 5.7% of sales.
That spending is focused on Uncrustables, Cafe Bustelo, Meow Mix and Milk-Bone. The logic is clear, but the payoff still has to show up in durable volume growth during a year when lower pricing and softer volume/mix are expected to pressure sales.
How Smucker Signals Frame the Trend TradeThe bottom line is that SJM has credible trend support, but the stock still reads as a neutral trend trade. Channel diversification, convenience innovation, premium coffee and margin recovery all help, but fiscal 2027 sales visibility remains weak.
The stock currently carries a Zacks Rank #3 (Hold). It also has a Value Score of B, Growth Score of A, Momentum Score of A and VGM Score of A, giving investors favorable style signals to compare with the hold-ranked earnings-revision backdrop. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores are designed to complement the Zacks Rank, not replace it. For SJM, that means favorable grades support monitoring the trend case, while the Zacks Rank #3 keeps the near-term stance measured until sales and execution improve.
J.M. Smucker guided for sales to decline in the coming year as it leans away from price increases, looking instead to drive volume growth in key areas and improve profitability.
SJM Surges 9%, But Hostess Weakness Clouds OutlookJ. M. Smucker NYSE: SJM executives said the company is entering fiscal 2027 with momentum across key brands, while cautioning that commodity costs, tariffs and consumer behavior remain important variables in its outlook.
During the company’s fiscal fourth-quarter earnings question-and-answer session, Chief Executive Officer Mark Smucker said the company had “a great quarter and a solid outlook” for the new fiscal year. He pointed to what he described as a complementary portfolio spanning coffee, frozen handhelds and spreads, pet foods and sweet baked snacks.
Get J. M. Smucker alerts:
5 Under-the-Radar Consumer Staples Stocks With Pricing PowerChief Financial Officer Tucker Marshall said the company’s full-year outlook includes mid-single-digit percentage deflation, driven largely by green coffee. Excluding green coffee and tariffs, Smucker expects low-single-digit cost inflation across the rest of its portfolio, primarily in packaging, ingredients and transportation.
Marshall said the outlook reflects the company’s current best estimate, while noting that geopolitical tensions in the Middle East could affect cost assumptions depending on their duration. He said Smucker expects to manage additional inflation through procurement, hedging, productivity savings and pricing “when and where appropriate.”
Coffee Deflation Expected to Support Profit Recovery The 4 Dividend Stocks Smart Money Is Grabbing Right NowCoffee was a major focus of the call, as executives discussed the expected impact of lower green coffee costs. Smucker said the coffee category remains attractive and that the company continues to lead across segments and the value spectrum. He highlighted Café Bustelo as “a very significant growth brand” with more than $500 million in sales.
Smucker said the company expects profit improvement in coffee as the commodity environment moderates. However, he said the company is being prudent in forecasting volume response to lower prices because consumers remain cautious.
“Coffee is a pass-through category,” Smucker said, adding that the company passes costs through to customers and consumers “up and down” in a measured way. He said the company is currently focused more on trade spending, and that list price reductions would depend on when Smucker takes physical inventory of lower-cost coffee.
Marshall said the company expects its first quarter to be roughly flat from a net sales perspective, with green coffee deflation beginning to affect results more meaningfully in the second quarter and beyond. He also confirmed that the expected improvement in retail coffee margins into the high-20% range is largely a second-through-fourth-quarter event.
Uncrustables Remains a Growth Driver Executives said the Uncrustables brand remains one of Smucker’s strongest growth platforms. Mark Smucker said the brand has reached $1 billion in sales and continues to benefit from its position in the frozen category, new formats, new occasions and innovation such as higher-protein morning offerings and “fridge-friendly” products.
Smucker said Uncrustables is not expected to continue growing at a double-digit rate, but the company still sees runway through distribution, household penetration, innovation and brand-building investments.
Marshall said Smucker expects mid-single-digit growth for Uncrustables in fiscal 2027, driven by volume and mix momentum and partially offset by strategic investments. He said roughly 75% of Uncrustables sales go through traditional U.S. retail, with the remaining 25% through away-from-home channels, where growth is expected to be slightly faster due to the smaller base and additional opportunities.
On the brand’s fridge-friendly format, Smucker said customer and consumer reception has been strong. He said all Uncrustables sandwiches are being transitioned to the fridge-friendly format, with the full portfolio expected to be converted around mid-summer.
Spreads, Pet and Sweet Baked Snacks Face Mixed Trends Smucker said the company is seeing some pressure in spreads, but framed the frozen handheld and spreads segment as a broader “peanut butter and jelly story.” He said the company chose not to repeat some prior promotional activity and is not seeing unusual competitive behavior in the category.
In peanut butter, Smucker said recent softness was partly tied to weather events and stock-up activity, rather than structural category weakness. He said the company remains well positioned with leadership in stabilized peanut butter and several leading natural and organic peanut butter brands. He also cited the launch of Jif Simply, a limited-ingredient stabilized peanut butter product.
In pet, Marshall said the company continues to see volume momentum across Meow Mix and Milk-Bone, but segment profit is expected to be pressured by inflation and marketing investments.
For Sweet Baked Snacks, executives said the focus remains on stabilizing the Hostess business and improving profitability. Smucker said the company has strengthened the portfolio through SKU rationalization and noted that donuts grew 13% and now represent about 40% of the portfolio. He said the breakfast occasion for Hostess continues to perform well.
Smucker also said the company completed its manufacturing footprint consolidation and recovered more quickly than expected from a fire in the prior quarter. He said it will take time for the business to return to top-line growth.
Marshall said Sweet Baked Snacks segment profit is expected to rise about 30% year over year, helped by cost control, trade execution and a list price increase across parts of the donuts portfolio.
Marketing, Tariffs and Cost Savings Marshall said Smucker remains committed to supporting its brands through marketing, with spending expected to be about 5.7% of net sales in the upcoming fiscal year. He said that represents an increase of about $30 million year over year and nearly $500 million in total spending, with investments expected to be fairly balanced throughout the year.
On tariffs, Marshall said Smucker experienced tariffs in fiscal 2026 and is assuming a 10% tariff level in its fiscal 2027 outlook. He said the company is pursuing refunds for previously paid tariffs, but the scope and timing remain uncertain, so no benefit has been included in guidance.
Marshall also discussed the company’s transformation office, saying Smucker targets gross cost savings equal to a couple points of revenue each fiscal year. He said future efforts will focus on supply chain areas he described as “buy, make, and move,” as well as the use of technology to improve the company’s cost structure.
Debt Reduction Remains a Priority Marshall said Smucker generated $1.2 billion in free cash flow in fiscal 2026, allowing the company to repay more than $700 million of debt and pay just over $450 million in dividends. For fiscal 2027, he said the company remains committed to generating at least $1 billion in free cash flow, with capital expenditures expected to be roughly flat at $325 million.
The company plans to pay down an additional $500 million of debt, which Marshall said would support reducing leverage to around 3 times by the end of the fiscal year, down from about 3.8 times at the end of fiscal 2026.
Marshall said that as Smucker approaches its leverage objectives, it could consider additional cash deployment options, including potential share repurchases. However, he noted that the company’s current guidance does not include share repurchases.
In closing remarks, Mark Smucker said the company’s priorities are driving focused organic volume growth, improving profitability and earnings growth, and maintaining discipline in capital deployment.
About J. M. Smucker NYSE: SJMThe J. M. Smucker Company is a diversified food and beverage manufacturer and marketer known for a portfolio of well-established consumer brands. The company's main business activities include the production and distribution of fruit spreads, peanut butter, coffee and coffee filters, as well as pet food and pet snacks. Smucker's core product lines serve both retail and foodservice customers through grocery chains, mass merchandisers, club stores, convenience outlets and e-commerce channels.
Among its leading brands are Smucker's® fruit spreads, Jif® peanut butter, Folgers® and Dunkin'® coffees, and Café Bustelo® coffee.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in J. M. Smucker Right Now?Before you consider J. M. Smucker, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and J. M. Smucker wasn't on the list.
While J. M. Smucker currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Just getting into the stock market? These 10 simple stocks can help beginning investors build long-term wealth without knowing options, technicals, or other advanced strategies.
Smucker (SJM - Free Report) came out with quarterly earnings of $2.77 per share, beating the Zacks Consensus Estimate of $2.65 per share. This compares to earnings of $2.31 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.60%. A quarter ago, it was expected that this food maker would post earnings of $2.27 per share when it actually produced earnings of $2.38, delivering a surprise of +4.85%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Smucker, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $2.27 billion for the quarter ended April 2026, missing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $2.14 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Smucker shares have added about 4.1% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for Smucker?While Smucker has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Smucker was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.11 on $2.17 billion in revenues for the coming quarter and $9.68 on $9.16 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, McCormick (MKC - Free Report) , is yet to report results for the quarter ended May 2026. The results are expected to be released on June 25.
This spices and seasonings company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
McCormick's revenues are expected to be $1.9 billion, up 14.5% from the year-ago quarter.
The The J. M. Smucker Company delivered strong Q4 results, beating EPS and revenue estimates, and reaffirmed a Buy rating based on valuation and technicals. SJM offers a high free cash flow yield (9%) and a 4.3% dividend, with shares trading over 20% below fair value using a conservative 13x P/E. FY 2027 guidance projects adjusted EPS of $9.75–$10.25 and $1.0 billion in free cash flow, despite a 3–4% expected sales dip.
Smucker (SJM - Free Report) reported $2.27 billion in revenue for the quarter ended April 2026, representing a year-over-year increase of 5.8%. EPS of $2.77 for the same period compares to $2.31 a year ago.
The reported revenue represents a surprise of -0.12% over the Zacks Consensus Estimate of $2.27 billion. With the consensus EPS estimate being $2.65, the EPS surprise was +4.6%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Smucker performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Sweet Baked Snacks: $237.2 million compared to the $220.34 million average estimate based on four analysts. The reported number represents a change of -5.5% year over year.Net Sales- U.S. Retail Frozen Handheld and Spreads: $454.1 million versus the four-analyst average estimate of $462.06 million.Net Sales- U.S. Retail Pet Foods: $401.7 million versus $394.41 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.6% change.Net Sales- International and Away From Home: $344.5 million versus $344.46 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.Net Sales- U.S. Retail Coffee: $830.6 million versus the four-analyst average estimate of $848.73 million. The reported number represents a year-over-year change of +12.5%.Segment Profit- Sweet Baked Snacks: $29 million versus the three-analyst average estimate of $30.11 million.Segment Profit- U.S. Retail Frozen Handheld and Spreads: $124.7 million versus $99.03 million estimated by three analysts on average.Corporate administrative expenses: $-87.1 million compared to the $-78.67 million average estimate based on three analysts.Segment Profit- U.S. Retail Pet Foods: $125.7 million versus $115.04 million estimated by three analysts on average.Segment Profit- International and Away From Home: $75.8 million compared to the $77.92 million average estimate based on three analysts.Segment Profit- U.S. Retail Coffee: $214 million versus the three-analyst average estimate of $211.29 million.View all Key Company Metrics for Smucker here>>>
Shares of Smucker have returned +2.6% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
J M Smucker Co (NYSE:SJM) reported stronger-than-expected fourth-quarter results on Tuesday, with its coffee business leading a broad earnings beat that sent shares up roughly 12%.
The Orrville, Ohio-based packaged food company posted net sales of $2.27 billion for the three months ended April 30, 2026, a 6% increase from the same period a year earlier and ahead of analyst estimates.
Adjusted earnings per share of $2.77 topped consensus by approximately 5% and marked a nearly 20% improvement year-over-year.
The US Retail Coffee segment was the standout performer, generating $830.6 million in sales, up 12% from the prior-year period, with Dunkin', Folgers and Cafe Bustelo all contributing to the gain. The Frozen Handheld and Spreads segment posted sales of $454.1 million, up 1% year-over-year, while segment profit surged 37%.
The company's Sweet Baked Snacks unit also surprised to the upside, with organic sales declining approximately 4% against analyst expectations of a roughly 12% decline.
Looking ahead, management guided fiscal 2027 net sales down 3% to 4%, citing green coffee deflation as a headwind to the Coffee segment. Gross margin is expected to expand approximately 300 basis points, and the company set a full-year adjusted EPS range of $9.75 to $10.25, with the midpoint of $10 above the prior consensus estimate of $9.86.
The company also said it expects to maintain its quarterly dividend of $1.10 per share and generate free cash flow of approximately $875 million in the coming fiscal year.
JM Smucker (SJM) shares moved sharply higher after the packaged food company delivered a stronger-than-expected fourth quarter and set its 2027 full-year profit
J. M. Smucker (SJM) shares have surged following the release of its Q4 (April) earnings report. The company exceeded earnings per share (EPS) expectations, wit
Key Takeaways SJM beat Q4 earnings expectations, but revenues came in light as volume/mix declined. SJM leaned on price hikes and lower marketing spend, even as tariffs and costs weighed on coffee. SJM guides FY27 sales lower on coffee resets, while Uncrustables, Cafe Bustelo and Meow Mix target growth. The J. M. Smucker Company (SJM - Free Report) reported fourth-quarter fiscal 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, while net sales missed the same. The company delivered year-over-year growth in both top and bottom lines, supported by pricing actions, lower marketing expenses and broad-based segment profit growth. However, unfavorable volume/mix, mainly in coffee and sweet baked goods, remained a drag.
Management highlighted continued momentum across key growth platforms, including Uncrustables, Cafe Bustelo and Meow Mix. As the operating environment remains dynamic, the company is focused on driving organic volume growth, improving profitability, accelerating earnings growth and maintaining disciplined capital allocation.
SJM’s Quarterly Performance: Key Metrics & InsightsAdjusted earnings were $2.77 per share, beating the Zacks Consensus Estimate of $2.65. Earnings increased 20% from the prior-year quarter, driven by higher pricing, increased adjusted gross profit, favorable SD&A expenses and lower interest expense.
Net sales were $2,268.1 million, up 6% year over year. However, the top line missed the Zacks Consensus Estimate of $2,271 million.
Comparable net sales, excluding prior-year divestiture-related sales and favorable foreign currency exchange, increased 6%. Comparable net sales growth reflected a 10-percentage-point benefit from net price realization, mainly driven by higher pricing for coffee and sweet baked goods. This was partly offset by a 4-percentage-point decline in volume/mix, primarily due to decreases in coffee and sweet baked goods, partially mitigated by growth in Uncrustables sandwiches.
Adjusted gross profit increased 4% year over year to $835.3 million. The upside reflected higher net price realization, partially offset by increased costs, including commodity costs and tariffs, along with unfavorable volume/mix. The company incurred approximately $23 million in tariff expenses in the quarter, mainly impacting the U.S. Retail Coffee segment.
Adjusted operating income rose 14% to $482.1 million, reflecting increased adjusted gross profit and favorable SD&A expenses. Lower marketing spend and distribution costs more than offset higher general and administrative expenses.
Decoding SJM’s Q4 Segmental PerformanceU.S. Retail Coffee: Net sales increased 12% to $830.6 million, driven by higher pricing across the portfolio. Net price realization contributed 21 percentage points, while volume/mix declined 8 percentage points due to decreases in Dunkin’ and Folgers, partly offset by growth in Café Bustelo. Segment profit increased 1% to $214 million, as pricing gains and lower marketing spend mostly offset higher costs, including commodity costs and tariffs, and unfavorable volume/mix.
U.S. Retail Frozen Handheld and Spreads: Net sales rose 1% to $454.1 million. Net price realization added 2 percentage points, led by higher pricing for Uncrustables sandwiches and lower trade spend for Jif peanut butter. Volume/mix declined 2 percentage points, reflecting lower sales of Jif peanut butter and Smucker’s fruit spreads, partly offset by growth in Uncrustables. Segment profit surged 37% to $124.7 million, aided by lower marketing spend, higher pricing, lower costs, lapping equipment write-off charges and lower pre-production expenses tied to the new Uncrustables manufacturing facility.
U.S. Retail Pet Foods: Net sales increased 2% to $401.7 million. Pricing contributed 3 percentage points, driven by cat food and dog snacks, while volume/mix declined 2 percentage points due to weakness in dog snacks and the lapping of contract manufacturing sales related to divested pet food brands. Segment profit advanced 18% to $125.7 million, supported by higher pricing and lower marketing spend.
Sweet Baked Snacks: Net sales decreased 5% to $237.2 million. Excluding noncomparable sales related to the divestiture of certain Sweet Baked Snacks value brands, net sales declined 4%. Volume/mix reduced sales by 12 percentage points, mainly due to softness in snack cakes and breakfast products, partly offset by growth in donuts. Higher pricing contributed 8 percentage points. Segment profit rose 45% to $29 million, reflecting higher pricing and lower marketing expenses, partly offset by unfavorable volume/mix and higher costs. Management noted that the segment’s fourth-quarter sales exceeded expectations, aided by a faster-than-anticipated return to production following the February fire at its Emporia, KS, facility. Hostess Donettes grew net sales 13% in the quarter.
Away From Home: Net sales increased 15% to $228.3 million. Excluding favorable currency movements, sales rose 14%. Net price realization added 8 percentage points, mainly due to higher coffee pricing, while volume/mix contributed 6 percentage points, driven by increases in Uncrustables sandwiches, fruit spreads and coffee. Segment profit climbed 21% to $55.3 million, benefiting from higher pricing and favorable volume/mix, partly offset by higher costs. The company also began presenting Away From Home as a reportable segment, reflecting the business’s increased scale and strength.
SJM’s Financial Health SnapshotThe company ended fiscal 2026 with cash and cash equivalents of $58.6 million and long-term debt, excluding the current portion, of roughly $6.4 billion. Total shareholders’ equity was $5.5 billion.
Cash provided by operating activities totaled $579.2 million in the quarter. Free cash flow was $483.9 million.
For fiscal 2026, free cash flow totaled about $1.16 billion. The company returned $464.7 million to shareholders through dividends and repaid $720 million of debt during the year.
What to Expect From SJM in FY27?Smucker issued its fiscal 2027 outlook. The company expects net sales to decline 3% to 4% year over year, primarily due to lower net price realization and unfavorable volume/mix. Management noted that the sales decline mainly reflects expectations for green coffee deflation, as the company plans to pass lower costs to consumers through pricing.
Adjusted earnings per share are expected in the band of $9.75-$10.25, implying year-over-year growth of 7-12%. The guidance assumes an adjusted gross profit margin of approximately 38%, SD&A expenses rising about 5%, net interest expense of nearly $345 million, an adjusted effective tax rate of 24.3% and weighted-average shares outstanding of 107 million.
Free cash flow is projected to be approximately $1 billion, with capital expenditures of $325 million. Management expects to pay down about $500 million of debt in fiscal 2027 and move toward a leverage ratio of around 3.0 net debt to adjusted EBITDA by the end of the fiscal year.
The company expects volume/mix growth across its key platforms — Uncrustables, Cafe Bustelo, Meow Mix and Milk-Bone — in fiscal 2027.
Shares of this Zacks Rank #4 (Sell) company have tumbled 6.2% over the past three months compared with the industry’s decline of 8.4%.
Better-Ranked Stocks to ConsiderThe Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
B&G Foods (BGS - Free Report) is a branded packaged-food company that manufactures, markets and distributes a portfolio of shelf-stable and frozen food products. BGS carries a Zacks Rank #2.
The Zacks Consensus Estimate for B&G Foods’ current and next financial-year earnings calls for year-over-year growth of 11.8% and 15.8%, respectively.
Nomad Foods (NOMD - Free Report) , a leading frozen-food company that owns brands such as Birds Eye, iglo and Findus, and sells frozen fish, vegetables, ready meals and other frozen foods across Europe, currently carries a Zacks Rank #2. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
The Zacks Consensus Estimate for Nomad Foods’ current fiscal-year sales and earnings suggests a year-over-year decline of almost 1% and 8%, respectively, though the consensus mark for the next fiscal-year sales and EPS indicates respective growth of 1.6% and 6.9%.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$88.25▼
$119.39Dividend Yield3.80%
Price Target$121.13
The J.M. Smucker Company NYSE: SJM may not pay the highest-yielding dividend among S&P 500 companies, but it still offers a sweet payout and is on track for annual increases alongside share price appreciation. The net result will be a double-digit compound annual growth rate (CAGR) over the subsequent few years, a tidy return for buy-and-hold investors.
While business is expected to contract in fiscal year 2027 (FY2027), worse than analysts expected, the company is in the midst of a transition that will lead to sustainable growth and wider margins. As it stands, earnings are expected to grow in FY2027, good news for the dividend and dividend investors.
Get J. M. Smucker alerts:
Smucker’s Business Transition Gains TractionSmuckers is undergoing a transformation focused on business rationalization, improved efficiency, and reinvigorated growth. Activist investor Elliott Management is assisting with guidance, information, and strategy planning.
The critical factor is the company's product portfolio, which is a hodgepodge of disparate categories, although most produced growth in fiscal Q4 2026 and strong, double-digit margins.
The primary culprits of underperformance are the Hostess brand and the Sweet Baked Snacks segment, which are contracting and dragging down overall growth. Margins have improved, but remain the weakest among the major segments. While no plans have been announced, investors should not be surprised to hear news that the company will divest the brand. Elliott Management is well-known for board shakeups, debt reduction, and divesting underperforming assets; so far, J.M. Smucker Co. has added two new board seats and is focusing on debt; a divestiture is a likely next move on Elliott’s agenda.
Smucker’s Reduces Debt: Improves Dividend ReliabilitySmucker’s is not out of the weeds, but it is making progress on its transition. The recent earnings results included significant balance sheet improvements, with highlights reflecting the impact of previous divestitures, improving cash flow, and debt reduction. Cash was flat compared to the prior year. Debt fell about 10%, and is expected to continue falling as cash flow improvements persist.
The dividend is reliable, at approximately 45% of the FY2027 earnings forecast, and offers a high yield near 4%. In the future, the company is likely to keep increasing the payout by mid-single digits, as it has over the trailing 5-year period, but there is an opportunity for accelerated growth. Improving operational quality and reinvigorated top-line growth are a recipe for accelerated distribution growth and buybacks. Buybacks are not a significant part of the thesis today, but they offset dilution and keep the share count steady, which is good enough for now.
SJM Stock Accumulated by Analysts and Institutions in 2026Analyst and institutional trends highlight the value and yield opportunity presented by SJM’s 2026 share price pullback. MarketBeat tracks 21 analysts rating the stock as a Hold with a 52% Buy-side bias. The group sees SJM as fairly valued in mid-June 2026, which aligns with two exponential moving averages (EMAs). Assuming the market sustains support at this level, the indication is that short- and medium-term traders will enter the mix, driving a bullish outlook for the stock.
Institutions, which collectively own more than 80% of the stock, are accumulating it. MarketBeat data reveal this group has been buying on balance for more than 12 consecutive quarters, at a pace of $1.6 to $1 on a trailing 12-month basis, and the trend continues into early Q2 2026. The likely outcome is that institutions will limit downside in the event of price corrections and underpin any rallies as they form.
Looking ahead, institutions may begin distributing shares when SJM reaches the top of its trading range, but that risk is diminished in FY2027. Improving business trends and an outlook for resumed growth suggest SJM’s market will reverse over time, potentially reaching a fresh long-term high in calendar 2027, if not by the end of this year.
The post-release price action looked favorable, with SJM stock rising by more than 10% in trading the day after the release. The MACD and stochastic suggest the rebound has only begun and has ample room to advance. The first target for price resistance is in the $110 to $112.50 range, aligning with a prior high and the long-term EMA. A move above it would signal a complete market reversal.
Should You Invest $1,000 in J. M. Smucker Right Now?Before you consider J. M. Smucker, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and J. M. Smucker wasn't on the list.
While J. M. Smucker currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.
Shares of J.M. Smucker (SJM 1.00%) rose on Tuesday after the jam and jelly purveyor's profits topped Wall Street's forecast.
Image source: Getty Images.
Price hikes drove Smucker's earnings higher Smucker's net sales grew 6% year over year to $2.3 billion in its fiscal 2026 fourth quarter, which ended on April 30.
Price increases helped offset volume declines in Smucker's spreads and coffee segments, boosting the company's profit margins.
Today's Change
(
-1.00
%) $
-1.17
Current Price
$
115.66
Smucker's adjusted operating income jumped 14% to $59.7 million, as its margin improved to 21.3% from 19.7% in the prior-year quarter.
In turn, the maker of Jif peanut butter and Folgers coffee saw its adjusted earnings per share surge 20% to $2.77. That bested Wall Street's estimates, which had called for per-share profits of $2.64.
Better still, Smucker's cash generation continued to strengthen. Its free cash flow soared 42% to $1.2 billion in fiscal 2026. That enabled the company to pay $465 in dividends while also paying down $720 million in debt.
A sizable dividend yield for shareowners Smucker's sees its full-year adjusted earnings per share rising by 7% to 12% to between $9.75 and $10.25 in fiscal 2027.
"Looking ahead, our strategic priorities for the fiscal year are to drive focused organic volume growth across our key platforms, improve profitability and accelerate earnings growth, and maintain a disciplined approach to capital deployment," CEO Mark Smucker said.
Investors can count on that capital deployment to include sizable cash payments to shareholders. Even after today's gains, Smucker's stock yields a solid 3.9%.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends J.M. Smucker. The Motley Fool has a disclosure policy.
Key Takeaways SJM guides fiscal 2027 net sales down 3%-4%, while adjusted EPS rises to $9.75-$10.25.SJM expects mid-single-digit declines in green coffee costs, with the biggest retail profit lift starting Q2.SJM: Uncrustables hit $1B sales; Sweet Baked Snacks profit rose 45% on pricing and lower ad spend. The J.M. Smucker Co. (SJM - Free Report) used its fourth-quarter call to make a forward-looking case rather than dwell on headline results. Management pointed to stronger quarterly execution, but the main message was that fiscal 2027 will hinge on coffee cost relief, tighter portfolio management and disciplined capital deployment.
That framing mattered because Smucker is guiding to lower sales, even as adjusted earnings per share rise. Executives spent much of the call explaining why margin improvement, not top-line acceleration, is the clearest near-term objective.
SJM Sets a Margin-Led 2027 AgendaCEO Mark Smucker said the company enters fiscal 2027 with momentum, but he also laid out a narrow set of priorities: organic volume growth on key platforms, better profitability and disciplined capital deployment.
That backdrop helps explain the outlook. Smucker expects fiscal 2027 net sales to decline 3% to 4%, while adjusted earnings per share are projected at $9.75 to $10.25, above fiscal 2026 adjusted EPS of $9.15.
The company’s fourth quarter supported that message, with net sales up 6% to $2,268.1 million and adjusted EPS up 20% to $2.77. Adjusted EPS topped the $2.65 estimate by 4.5%. However, revenues marginally missed the Zacks Consensus Estimate of $2,270.9 million, with a negative surprise of 0.10%.
Smucker Sees Coffee Turning From Drag to SupportCoffee was the clearest source of optimism on the call. Management said green coffee costs should decline at a mid-single-digit rate in fiscal 2027, creating room for profit recovery after a volatile inflationary stretch.
CFO Tucker Marshall said retail coffee profit should improve as moderating commodity costs flow through the business, with the largest benefit starting in the second quarter. Management also expects list price reductions to phase in only after lower-cost inventory reaches the system.
Analysts pressed on whether lower pricing should drive a stronger volume response. Mark Smucker answered with a notably cautious tone, saying the company is assuming prudent elasticities because consumers remain careful even as prices ease.
SJM Keeps Uncrustables at the CenterUncrustables remained the company’s standout growth platform. Management said the brand reached $1 billion in annual sales and should post mid-single-digit growth in fiscal 2027, led primarily by volume and mix.
Executives also highlighted the transition to a fridge-friendly format across the full Uncrustables lineup by mid-summer. Mark Smucker said retailer response has been strong, while Marshall noted that away-from-home channels, now about one-quarter of the business, should grow faster than U.S. retail from a smaller base.
That helps offset weaker trends elsewhere in frozen handheld and spreads. On the call, management acknowledged pressure in spreads and said the total segment will be down year over year as Uncrustables’ strength is weighed against softer peanut butter and fruit spreads.
Hostess Gives SJM a Profit TestSweet Baked Snacks was another focal point because investors remain focused on the Hostess integration and turnaround path. The quarter showed a 5% sales decline for the segment, but profit rose 45% as pricing and lower marketing spend helped margins recover.
Marshall said fiscal 2027 segment profit should grow about 30%, supported by improved costs, SKU rationalization, and selective pricing, especially in donuts. Mark Smucker said the business has been stabilized operationally, though it will take time before top-line growth returns.
That exchange stood out in Q&A because management did not overpromise on demand. Instead, executives emphasized better visibility, cleaner execution in trade and production, and a continued focus on profit before renewed sales expansion.
Smucker Balances Pet Pressure and Cost WorkPet food was a more mixed story. The fourth quarter delivered a 2% sales increase and an 18% profit increase, but management said inflation and higher brand spending will pressure profitability in fiscal 2027 despite volume momentum in Meow Mix and Milk-Bone.
Marshall described low-single-digit inflation outside coffee and tariffs, with pressure coming from packaging, ingredients, and transportation. He added that geopolitical tension in the Middle East remains part of the cost backdrop embedded in guidance.
To offset those costs, the company is leaning on its transformation office. Marshall said Smucker continues to target gross savings worth a couple of points of revenues annually, with current work centered on supply chain efficiency and technology.
SJM Sticks to Debt ReductionCapital allocation was another important call theme. Smucker generated $1.16 billion of free cash flow in fiscal 2026 and expects about $1.0 billion in fiscal 2027, while capital spending is projected at $325 million.
Marshall said the first call on that cash remains debt reduction. The company plans another $500 million of paydown this year to move leverage to roughly 3 times by year-end, after finishing fiscal 2026 near 3.8 times.
Management also said tariff refunds are being pursued but were excluded from guidance because the timing and scope remain uncertain. That left the overall tone disciplined and conservative, even as quarterly performance improved.
Smucker Leaves Investors With a Narrow PlaybookBy the end of the call, management had drawn a clear map for fiscal 2027: let coffee margins recover, keep Uncrustables growing, improve Hostess profitability, and preserve balance-sheet flexibility. The emphasis was on control and sequencing rather than broad-based demand strength.
That posture made the call less about a single strong quarter and more about whether Smucker can convert cost relief and portfolio actions into steadier earnings growth while working through soft sales expectations.
Zacks Signals on SJMSJM currently carries a Zacks Rank #4 (Sell), with Value, Growth, and VGM Score of B and a Momentum Score of C. Under the Zacks framework, Style Scores are most useful when paired with top-ranked stocks, while a Rank #4 points to weaker estimate revision trends despite respectable style characteristics.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
That makes the current setup mixed rather than outright supportive. The Style Scores suggest some favorable underlying traits, but the Zacks Rank remains the primary signal and can change as earnings estimate revisions move after the quarter.
The J.M. Smucker Co. (NYSE:SJM) reported upbeat fiscal fourth-quarter 2026 results on Tuesday.
Adjusted earnings came in at $2.77 per share, ahead of analysts' estimates of $2.64 per share. Net sales increased 6% year over year to $2.268 billion, slightly above the consensus estimate of $2.260 billion.
J.M. Smucker expects fiscal 2027 adjusted earnings of $9.75 to $10.25 per share, compared with analysts' estimates of $9.79 per share. The company forecast full-year sales of $8.689 billion to $8.779 billion, below the Wall Street consensus estimate of $9.107 billion.
Management expects net sales to decline 3% to 4% in fiscal 2027, citing lower pricing benefits and weaker volume and mix trends. The company also plans to reduce leverage to about three times EBITDA by fiscal 2027 through roughly $500 million in debt repayments. Management said future share repurchases could follow as leverage declines.
Smucker shares rose 0.1% to $112.50 in pre-market trading.
These analysts made changes to their price targets on Smucker following earnings announcement.
B of A Securities analyst Bryan Spillane maintained the stock with a Buy and raised the price target from $130 to $132. Morgan Stanley analyst Megan Alexander maintained the stock with an Equal-Weight rating and raised the price target from $106 to $110. Considering buying SJM stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
The J. M. Smucker Company remains a Buy after a strong earnings report, with a sustainable 4% dividend yield paid to wait for a potential recovery. SJM is working on its turnaround, targeting net debt/EBITDA of ~3x by fiscal year-end and maintaining robust free cash flow to support dividends and potential buybacks in the future. Management guides FY27 net sales to decline 3–4% but expects Adj. EPS of $9.75–$10.25, with $1B in free cash flow after $325M in CAPEX.
J. M. Smucker delivered a Q4 earnings beat, driving a sharp rebound from recent lows, but guidance for FY'27 is muted. SJM expects FY'27 revenues to decline 3-4% and FCF to drop by $200M, with flat EPS versus FY'25, reflecting limited growth prospects. Recent outperformance was driven by the coffee segment; underlying brand momentum remains relatively weak.
‘Sell at former tops' is an old Wall Street saying. It's not fiction. It refers to a common market dynamic.
Stocks tend to hit resistance when they reach levels that had previously been tops or peaks. As you can see on the chart, J.M. Smucker hit resistance yesterday around the $117 level.
Smucker’s Buyer's Remorse?There are people who bought shares around $117 who regretted their decision to do so when the price fell after. A number of them decided to hold onto their losing position.
Some of them also decided that if they could eventually do so, they would exit their positions at breakeven. So when the stock rallied back to around $117 yesterday, they placed sell orders. These orders formed resistance at the level again.
J.M. Smucker, also known as Smucker’s, is also overbought. This means the stock is above its typical trading range.
This dynamic will draw sellers into the market. They will be anticipating a reversal and move lower back into the range.
Their selling could put downward pressure on the shares.
Sometimes stocks reverse and head lower after they reach resistance. This happens when some of the sellers who created the resistance become impatient.
They are concerned that other sellers will undercut their prices. As a result, they reduce their offer prices. Other impatient sellers see this and reduce their prices as well. It results in a snowball effect that forces the shares into a downtrend.
Being overbought while at resistance can be a bearish dynamic. The rally in J.M. Smucker may be over.
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
