Why B&G Foods Stock Rose 36% in the First Half of 2020
Shares of packaged food maker B&G Foods (NYSE: BGS) rose 36% over the first six months of 2020, according to data from S&P Global Market Intelligence. That's pretty impressive when you compare it to the S&P 500 Index, which ended that period down by roughly 5%. However, investors need to think a little more deeply about this company before they make any decisions based on its recent stock gains.
The big story at B&G Foods in the first half was the same one that propelled the stocks of a lot of packaged food companies: COVID-19. With consumers asked to remain at home and nonessential businesses closed in an effort to slow the spread of the coronavirus, people's dining options were materially curtailed. Moreover, many decided to pack their pantries just in case things got really bad. B&G's collection of brands benefited from that increase in the purchasing of packaged food. For example, its first-quarter sales increased 8.9% year over year, and adjusted earnings rose 4.5%.
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Source Fool.com
