Has B&G Foods Gone Too Far, Too Fast?
The global pandemic is a painful reminder that humans can't fully control the environment around us. Still, the world's efforts to contain the spread of COVID-19 have led to more people eating at home -- a material shift in the normal dynamic (which had been steadily trending toward more eating out). For better or worse, this has led to a resurgence of demand in the packaged food industry.
B&G Foods (NYSE: BGS) -- which owns brands like Back to Nature, Bear Creek, Cream of Wheat, Green Giant, Ortega, and Mrs. Dash -- has been a huge beneficiary of this change. But are investors still too upbeat on this unique food maker?
B&G Foods is a relatively small player in the consumer staples sector, with a market cap of $1.7 billion. For reference, General Mills (NYSE: GIS), one of the larger players, has a market cap of $36 billion. That hasn't stopped investors from jumping into B&G's stock, however, with shares up an impressive 48% so far in 2020. At one point the stock had advanced nearly 80%! Compare that to General Mills, one of the better-performing food makers this year, which is up just 10% or so at this point. Even at its peak gain so far in 2020 General Mills lagged well behind B&G Foods.
Source Fool.com
