JM Smucker Earnings: Solid Report Reinforces That Recent Sell-Off Was Unwarranted; Shares Cheap

We don't anticipate a material change to no-moat Smucker's fair value estimate of $140 per share based on its solid (October-ended) fiscal second-quarter 2024 results. Shares were up about 4% on the report, but had sold off more than 20% over the prior three months due to market concerns about intensifying competition among consumer-packaged-foods companies for stretched consumers' wallets. However, we think the negative sentiment was overdone and see attractive risk-adjusted upside to the continued growth of Uncrustables and integration of Hostess.