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We expect The J.M. Smucker Company (SJM - Analyst Report), a leading manufacturer of food products, to beat expectations when it reports fourth quarter fiscal 2013 results on Jun 6.

Why a Likely Positive Surprise?

Our proven model shows that Smucker is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP: Smucker’sExpected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method) stands at +1.74%. This represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks Rank #2 (Buy): Smucker currently carries a Zacks Rank #2 (Buy). Note that stocks with Zacks Ranks #1, #2 and #3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.

The combination of the stock’s Zacks Rank #2 and ESP of +1.74% makes us confident of an earnings beat on Jun 6.

What is Driving the Better Than Expected Earnings?

Continued focus on its brands through innovations and promotional offerings, strategic acquisitions and improving volumes offered by K-cups are expected to lead to a positive earnings surprise in the upcoming quarter.

Smucker has beaten estimates in three out of the last four quarters, posting an average earnings surprise of 11.80%. Smucker also raised the lower end of its adjusted earnings guidance for fiscal 22013 to a range of $5.17 to $5.22 per share from 5.12 to $5.22 per share announced previously. The company had already increased its fiscal 2013 earnings guidance in the first and second quarters, reflecting its attractive earnings potential. Estimates are also showing upward trend, ahead of the fourth quarter results.

Other Stocks to Consider

Smucker is not the only firm looking up. You can also consider these stocks that offer exposure to the attractive consumer staples sector:

Flower Foods Inc (FLO - Snapshot Report), Earnings ESP of +2.86% and Zacks Rank #1 (Strong Buy)

Sanderson Farms Inc (SAFM - Snapshot Report), Earnings ESP of +10.11% and Zacks Rank #1 (Strong Buy)

Kraft Foods Group Inc (KRFT - Analyst Report), Earnings ESP of +4.48% and Zacks Rank #3 (Hold)

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