Why B&G Foods Stock Jumped 20% in May
Shares of food maker B&G Foods (NYSE: BGS) rose about 20% in May, according to data from S&P Global Market Intelligence. That easily beat the S&P 500 Index's gain of roughly 5%. What was most telling, however, was that B&G's shares really took off after it reported earnings in the early part of the month.
B&G's core business is basically buying smaller, up-and-coming brands and brands that larger companies no longer want. It uses its relationships with retailers to increase distribution and attempts to innovate with the brands, like creating new variations of stale products. The efforts to slow the spread of COVID-19 weren't expected to be a huge impediment to the company's business. However, it still wasn't clear how a collection of smaller brands would hold up. The answer came on May 5, when the company reported first-quarter earnings.
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Source Fool.com
