SJM: Boring Is Beautiful


JM Smuckers (SJM) – maker of such iconic brands as Smuckers, Folgers and Milk Bone (they have a Pet Food division) – reports earnings Tuesday morning and the recent selloff in consumer staples stocks present a nice entry. SJM is reporting its fiscal year 4th quarter Tuesday morning and expects full year sales to be down 0.5% to 1.5% and EPS of $8.35-$8.65. SJM closed Friday at $122.77 which works out to a 14x multiple on trailing earnings. Guidance for the current fiscal year will be crucial of course. SJM also pays a 3.23% dividend. SJM isn’t sexy but – like Campbell Soup (CPB) – in the current environment boring is beautiful.

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