Is J.M. Smucker Ready to Move Higher?
Consumer and pet foods conglomerate The J.M. Smucker Company (NYSE: SJM) has been a poor investment over the past five years; shares are no higher than in 2015, while the S&P 500 has doubled since then. Despite its poor track record in recent years, here are three reasons why the stock's next five years could be much better.
J.M. Smucker's troubles started in 2015 when the company made a strategic decision to jump into the pet food industry with both feet. It acquired Big Heart Pet Brands for $5.8 billion in cash and stock, giving J.M. Smucker ownership of pet food brands like Milk-Bone, Meow Mix, Kibbles n Bits, and more. A few years later, the company acquired Ainsworth Pet Nutrition for $1.7 billion in cash.
These acquisitions turned J.M. Smucker into a huge player in the pet food space. Today, it remains important to the business; approximately one-third of its total revenue is from pet food products.
Source Fool.com
