THS - J. M. Smucker Stock: Cheap But Some Concerns As Well
2024-06-12 17:50:45 ET
Summary
- The J. M. Smucker Company shares fell after the $5.6 billion Hostess deal, creating concerns about leverage, and growth potential.
- The company now sees mediocre growth, flattish earnings, while the balance sheet is fully leveraged.
- Valuations have come down, but other than the cheapness and stability argument, J. M. Smucker investors have not much to look forward to in the near term.
Shares of The J. M. Smucker Company ( SJM ) looked a lot better already in December of last year, in my view. This came after shares fell from the $140s in September 2023 to a level around the $118 mark, after a $5.6 billion deal for Hostess raised quite some questions on leverage, strategy, and in fact its growth potential....
J. M. Smucker Stock: Cheap, But Some Concerns As Well