Thursday was a day J.M. Smucker (NYSE: SJM) would like to soon forget.
The jelly and jam company reported second-quarter earnings that were 13 cents a share lower than the same quarter a year ago, then saw its stock drop to its lowest level since October 5.
But according to Barron’s, Smucker’s less-than-stellar second-quarter earnings are no reason to panic. The company can still “escape this jam,” as they cleverly put it.
Writer Teresa Rivas insists that patient investors in Smucker will be rewarded. She cites coffee as the main reason.
Smucker’s coffee unit is growing, with sales up 29 percent for the quarter. The company is set to buy Sara Lee’s (NYSE: SLE) North American foodservice coffee and hot beverage business, which should increase coffee sales even further.
Trading at 13 times forward earnings, Smucker is reasonably priced, Barron’s says.
Click here to read more of Barron’s bullish outlook on Smucker.