Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at J. M. Smucker (NYSE: SJM) and its peers.

As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

The 21 shelf-stable food stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.8%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

J. M. Smucker (NYSE: SJM)

Best known for its fruit jams and spreads, J.M Smucker (NYSE: SJM) is a packaged foods company whose products span from peanut butter and coffee to pet food.

J. M. Smucker reported revenues of $2.33 billion, up 2.6% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ gross margin estimates but full-year EPS guidance slightly missing analysts’ expectations.

"We are pleased with our second quarter results and the positive momentum that we are experiencing in our business," said Mark Smucker, Chief Executive Officer and Chair of the Board.

Unsurprisingly, the stock is down 3.2% since reporting and currently trades at $100.91.

Is now the time to buy J. M. Smucker? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: J&J Snack Foods (NASDAQ: JJSF)

Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ: JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.

J&J Snack Foods reported revenues of $410.2 million, down 3.9% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $93.93.

Is now the time to buy J&J Snack Foods? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: TreeHouse Foods (NYSE: THS)

Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.

TreeHouse Foods reported revenues of $841.9 million, down 1.5% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ gross margin estimates.

Interestingly, the stock is up 25.3% since the results and currently trades at $23.88.

Read our full analysis of TreeHouse Foods’s results here.

Lamb Weston (NYSE: LW)

Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.

Lamb Weston reported revenues of $1.66 billion, flat year on year. This print beat analysts’ expectations by 2.6%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Lamb Weston had the weakest full-year guidance update among its peers. The stock is up 6.3% since reporting and currently trades at $59.39.

Read our full, actionable report on Lamb Weston here, it’s free for active Edge members.

SunOpta (NASDAQ: STKL)

Committed to clean-label foods, SunOpta (NASDAQ: STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products.

SunOpta reported revenues of $205.4 million, up 16.6% year on year. This result topped analysts’ expectations by 5.2%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.

SunOpta pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 25.4% since reporting and currently trades at $3.92.

Read our full, actionable report on SunOpta here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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