As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at shelf-stable food stocks, starting with Utz (NYSE: UTZ).

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 20 shelf-stable food stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.

While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.

Utz (NYSE: UTZ)

Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE: UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.

Utz reported revenues of $366.7 million, up 3% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.

“I am pleased with our strong performance in the second quarter, with Organic Net Sales growth of nearly 3%(1). Our Branded Salty Snacks portfolio is accelerating, with 5.4% growth in the quarter(1). We gained value and volume shares in both our Core and Expansion Geographies(3). Our proactive approach to cost management and operational excellence has enabled us to achieve significant Adjusted Gross Profit Margin expansion,” said Howard Friedman, Chief Executive Officer of Utz.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $13.85.

Is now the time to buy Utz? Access our full analysis of the earnings results here, it’s free.

Best Q2: Hershey (NYSE: HSY)

Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.

Hershey reported revenues of $2.61 billion, up 26% year on year, outperforming analysts’ expectations by 3.1%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA and organic revenue estimates.

Hershey pulled off the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $184.96.

Is now the time to buy Hershey? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Conagra (NYSE: CAG)

Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE: CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.

Conagra reported revenues of $2.78 billion, down 4.3% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.

Conagra delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.3% since the results and currently trades at $19.29.

Read our full analysis of Conagra’s results here.

Campbell's (NASDAQ: CPB)

With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ: CPB) is a packaged food company with an illustrious portfolio of brands.

Campbell's reported revenues of $2.32 billion, up 1.2% year on year. This result met analysts’ expectations. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

The stock is up 8.3% since reporting and currently trades at $34.05.

Read our full, actionable report on Campbell's here, it’s free.

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 $1.68 billion, up 4% year on year. This print beat analysts’ expectations by 5.7%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ organic revenue estimates.

Lamb Weston scored the biggest analyst estimates beat among its peers. The stock is up 18.1% since reporting and currently trades at $58.

Read our full, actionable report on Lamb Weston here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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