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The J.M. Smucker Company - AI Stock Analysis

Analysis generated June 5, 2024

The J.M. Smucker Company, commonly known as Smucker’s, is an American manufacturer of jam, jelly, fruit preserves, ice cream toppings, beverages, shortening, peanut butter, and other products. Founded in 1897, the company has headquarters in Orrville, Ohio. Over the years, Smucker's has grown through acquisitions, expanding its portfolio to include brands like Jif, Folgers, and more. It stands as a prominent player in the packaged foods industry, known for its extensive range of consumer goods.

Fundamental Analysis

The J.M. Smucker Company’s revenue for the last quarter was $2.22 billion, which reflects a 14.52% increase compared to the previous quarter. This is a positive indication of growth. However, the year-over-year revenue comparison showed a slight decrease of 0.55%, which may raise some concerns.

Net income for the last quarter was $120 million, representing a significant decrease of 38.22% from the previous quarter and a 42.25% decline compared to the same quarter last year. Such a decline suggests that the company may be facing profitability challenges that need to be addressed.

EBITDA for the last quarter was $252 million, down 13.37% from the previous quarter and 23.98% lower than the same quarter last year. This decline in EBITDA points toward potential operational inefficiencies or increased costs.

The current P/E ratio is a staggering 12,520, indicating potential overvaluation of the stock. A high P/E ratio may signal that the stock price is not justifiable by earnings alone, which tends to be a bearish sign.

Technical Analysis

Today's stock price for The J.M. Smucker Company is $110.33. This represents a short-term decrease of 1.56% compared to a month ago. More concerning is the long-term perspective, showing a 21.90% decline compared to a year ago.

Despite these declines, the trend seems to be bullish as indicated by the current Simple Moving Average (SMA10) of 110.20, which is higher than the previous SMA10 of 110.14. This suggests a potential upward movement in stock price.

The Relative Strength Index (RSI) stands at 68.8, indicating a neutral condition. This means the stock is neither overbought nor oversold, offering a balanced perspective on its current trading condition.

Alternative Data Analysis

Job postings for The J.M. Smucker Company are currently at 92, reflecting a 12% downturn over the past couple of months. This suggests the company may be attempting to cut costs or improve margins. Employee sentiment is reported as neutral.

Customer acquisition metrics are strong, with an estimated 89,000 visitors to their webpage, showing a 48% increase over the last few months. This bullish trend could indicate a growing customer base.

Customer engagement, however, shows mixed results. The company has 4,900 followers on Instagram with no significant change, whereas its Twitter following has decreased by 3%, totaling 100 followers, hinting at a possible decline in customer interest.

According to AltIndex’s AI score, which combines fundamental, technical, and alternative data analysis, The J.M. Smucker Company has a score of 55, which signals a hold recommendation.

Conclusion and Recommendation

Based on the comprehensive stock analysis of The J.M. Smucker Company, there are both positive and negative takeaways:

• Positives: Short-term revenue growth, bullish technical indicators, and a strong increase in webpage visitors.
• Negatives: Declining net income and EBITDA, a high P/E ratio, and decreasing customer and employee engagement.

Given the mixed signals from both the fundamental and technical analyses, and the AltIndex AI score of 55 signaling a hold, our recommendation would be to hold the stock at this time. Investors should keep a close watch on the company’s next earnings report and any strategic moves made to improve profitability and operational efficiency.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.