McCormick (NYSE: MKC) modestly outperformed the wider market in 2022, but the packaged foods specialist's stock still ended the year with a double-digit percentage drop in value. Wall Street wasn't thrilled to see slowing sales growth and weakening profitability as consumers adjusted to more normal mobility patterns.
That stock price decline gave investors an unusually generous valuation for the spice, sauce, and flavorings giant. Let's look at a few reasons why that shift makes the stock an attractive buy in early 2023.
Sure, sales trends look weaker right now than they have in recent years. Revenue declined in the core consumer segment through the nine months that ended in late August due to several pressures including soaring growth in earlier phases of the pandemic. McCormick was pinched by weaker demand following some price increases, too.
Source Fool.com