SJM - 2020 Will Be A Banner Year For The Packaged Food Sector
Big food has struggled in recent history to keep up with changing consumer preferences, but the overnight change in eating behavior due to the coronavirus (COVID-19) is one that food manufacturers are well-positioned to benefit from. The fallout from the virus represents significant upside for investors as the sector will see an unprecedented benefit to sales and earnings due to changing consumer trends. Despite the recent market rally, this upside is not being fully appreciated by the market since most food stocks still trade below pre-social distancing levels.
Recent performance of food stocks has lagged