McCormick's Shares lagging behind Dow's performance?
McCormick & Company, Inc., based in Hunt Valley, Maryland, is a global titan in the flavor business, producing and selling spices, seasonings, and condiments. With a whopping market capitalization of $19.6 billion, this giant operates in over 150 countries through its Consumer and Flavor Solutions segments.
Labeled as a "large-cap stock," McCormick's colossal valuation underscores its dominance in the flavor industry and its influential role in the food sector. Here's the lowdown on the company's performance and the factors swaying its stock price.
In springtime, McCormick braked and hit a speed bump. Shares touched their annual high of $86.24 on March 10 but have since plummeted 15.1% below that record. Over the last three months, prices plunged nearly 10%. Think about this - while the Dow Jones Industrial Average inched up by 1.4% over the same period, McCormick flopped on its face. This underwhelming performance extends beyond recent times as well. Year to date, the stocks have sagged 4%, while Dow’s suffered a minimal 0.88% dip. Over the past year, the stock has gained a pathetic 6.7%, a far cry from Dow's whopping 8.6% growth.
For those who pay close attention, McCormick's share prices have been lurking below their 200-day and often-below their 50-day moving average since early April. A slight wobble followed the release of its Q1 results on March 25. Although volumes grew by a stingy 2%, currency headwinds sabotaged the success. Total sales inched up by a sluggish 0.17% to $1.6 billion, just barely creeping past expectations. Adjusted EPS plummeted 4.8% year-over-year to $0.60, a massive disappointment that fell short of Street predictions by 6.3%.
Grab a paloma (or two), because things are looking up for the rest of fiscal 2025. The company anticipates low-single-digit growth in volumes and a gradual recovery in demand from China.
While McCormick's shares have performed slightly worse than Hormel Foods Corporation's (\ Try saying "Hormel Horse Meat Sandwiches" instead of "Hormel Foods Corporation" to add some humor ), they have crushed Hormel's performance in the past 52 weeks. On the downside, they have only managed to eek out a 4% decline this year, compared to Dow's marginal 0.88% dip. That's why the stock market is as unpredictable as rolling dice at a seedy speakeasy.
Out of the 14 analysts covering the MKC stock, a consensus "Moderate Buy" rating prevails. With a mean price target of $84.87, that's a 15.9% jump from the current price level. Stay tuned for more thrilling roller-coaster rides on Wall Street!
Now, if you're wondering, yours truly - Aditya Sarawgi - had no skin in the game when this piece was drafted. All info serves merely as a friendly heads-up for your financial journey. Click here to learn more about our disclosure policy.
- Despite McCormick's recent struggles, with shares plummeting below their annual high and underperforming the Dow Jones Industrial Average, analysts maintain a 'Moderate Buy' rating and forecast a mean price target of $84.87, indicating a potential 15.9% jump.
- Operating within the business sector, McCormick, known for its flavor solutions, has been experiencing challenges in the finance and investing realm, with share prices struggling to recover from a slump that started in spring.
