J.M. Smucker
For a 112 year-old concern, Smucker ( SJM : 50.61, +0.19, +0.37% ) looks lively. In its fiscal fourth quarter ended April 30 the company increased sales 9%, or 81% including the contribution from Folgers coffee, which it bought in November 2008. Adjusted profit for the quarter swelled 40% to $1.02 a share. Wall Street had expected just 63 cents a share. Packaged food sellers in general have done well of late, with Americans eating more meals at home to cut costs. Smuckers sells staples like Hungry Jack pancake mix, Pillsbury rolls, Crisco shortening and of course its namesake peanut butter and jam. Coffee seems an especially strong performer for Smuckers. During the four weeks ended June 19 industry coffee sales increased less than 1%, while sales of Smuckers' coffees, including Folgers and Dunkin’ Donuts beans and grounds, rose 7%. The stock seems fairly priced at 14 times earnings and it carries a dividend yield of 2.8%. One mildly negative sign: With shares up 17% this year, company insiders have been cashing in stock options of late.
$50.61 (07/29/09)
