We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Solid Stocks to Buy From an Expanding Grocery Market
Read MoreHide Full Article
Rising prices have been taking a toll on the U.S. economy as millions have been compelled to tighten their purse strings. Although inflation has somewhat eased over the past couple of months, it’s still at multi-year highs, which has kept intact the pressure on consumers when it comes to spending freely.
However, despite the inflationary pressures, spending on groceries has been on the rise, given that it is difficult to cut down on necessities. Also, with inflation easing and the retail sector still doing well, 2023 bodes well for the grocery market. Given this situation, stocks like MamaMancini's Holdings, Inc. , J&J Snack Foods Corp. (JJSF - Free Report) , Ingredion Incorporated (INGR - Free Report) and Conagra Brands, Inc. (CAG - Free Report) are likely to benefit in the near term.
Grocery Sales Rising
Retail sales at grocery stores increased 0.8% month over month in October to $73.16 billion. On a year-over-year basis, grocery sales jumped 8.6%, higher than the 8% year-over-year increase in October.
Also, the Census Bureau reported that sales at food and beverage outlets increased in November by 0.8% sequentially and 8.1% year over year to $81.63 billion.
The solid jump in grocery sales comes despite retail sales declining 0.6% in November. Retail sales have been robust throughout the year, but sales plummeted despite record sales on Black Friday and Cyber Monday.
On the other hand, sales at food and beverage stores have been on the rise consistently. On a year-to-date basis, sales at food and beverage stores grew 7.7% year over year to $859.06 billion. This reflects a jump of 8.4% in grocery sales to $771.18 billion on a year-to-date basis.
Also, according to Morning Consult’s consumer spending data for November, only four of the 19 categories tracked in its retail sales data registered gains. This includes sales at grocery stores, which increased 5% in November.
The retail sector has been struggling due to rising prices. However, sales still have been robust owing to higher demand. People have been aggressively cutting down on spending but they can’t do that with necessities like food and other essential commodities.
This has been driving grocery sales amid all the challenges. However, prices have been cooling lately, with consumers already seeing signs of inflation easing as growth in the CPI and the food-at-home index have slowed.
Also, online grocery sales have stayed elevated since the onset of the pandemic, although more people have been visiting physical stores this year on waning fears of COVID-19.
If pricing pressure eases, many consumers — particularly those who buy food — should be discouraged from cutting back on their spending, which will support economic expansion. Also, the U.S. GDP grew 2.9% in the third quarter, after declining in the first two quarters. This is yet another sign that the grocery market is poised to grow in the coming months, as demand is still high.
Our Choices
Given this situation, it would be wise to invest in these four food and grocery stocks. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MamaMancini's Holdings, Inc. is involved in the manufacturing & distribution of food products primarily in the United States. MMMB offers beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce and other similar Italian products.
MamaMancini's Holdings’ expected earnings growth rate for next year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 30 days. MMMB currently sports a Zacks Rank #1.
J&J Snack Foods Corp. is an American manufacturer, marketer and distributor of branded niche snack foods and frozen beverages for the food service and retail supermarket industries. Manufactured and distributed nationwide, JJSF’s principal products include SUPERPRETZEL, BAVARIAN BAKERY and other soft pretzels, ICEE and SLUSH PUPPIE frozen beverages, LUIGI'S, MINUTE MAID frozen juice bars and ices, WHOLE FRUIT sorbet and frozen fruit bars.
J&J Snack Foods’ expected earnings growth rate for next year is 20%. The Zacks Consensus Estimate for current-year earnings has improved 1.25% over the past 60 days. JJSF currently carries a Zacks Rank #2.
Ingredion Incorporated is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. INGR serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries.
Ingredion Incorporated’s expected earnings growth rate for next year is 19.8%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 30 days. INGR presently carries a Zacks Rank #2.
Conagra Brands, Inc. is one of the leading branded food companies of North America. CAG offers premium edible products, with refined focus on innovation. Conagra Brands maintains a highly dynamic product portfolio and incorporates alterations within it as per the preference pattern of end-users.
Conagra Brands’ expected earnings growth rate for next year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. CAG currently has a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Solid Stocks to Buy From an Expanding Grocery Market
Rising prices have been taking a toll on the U.S. economy as millions have been compelled to tighten their purse strings. Although inflation has somewhat eased over the past couple of months, it’s still at multi-year highs, which has kept intact the pressure on consumers when it comes to spending freely.
However, despite the inflationary pressures, spending on groceries has been on the rise, given that it is difficult to cut down on necessities. Also, with inflation easing and the retail sector still doing well, 2023 bodes well for the grocery market. Given this situation, stocks like MamaMancini's Holdings, Inc. , J&J Snack Foods Corp. (JJSF - Free Report) , Ingredion Incorporated (INGR - Free Report) and Conagra Brands, Inc. (CAG - Free Report) are likely to benefit in the near term.
Grocery Sales Rising
Retail sales at grocery stores increased 0.8% month over month in October to $73.16 billion. On a year-over-year basis, grocery sales jumped 8.6%, higher than the 8% year-over-year increase in October.
Also, the Census Bureau reported that sales at food and beverage outlets increased in November by 0.8% sequentially and 8.1% year over year to $81.63 billion.
The solid jump in grocery sales comes despite retail sales declining 0.6% in November. Retail sales have been robust throughout the year, but sales plummeted despite record sales on Black Friday and Cyber Monday.
On the other hand, sales at food and beverage stores have been on the rise consistently. On a year-to-date basis, sales at food and beverage stores grew 7.7% year over year to $859.06 billion. This reflects a jump of 8.4% in grocery sales to $771.18 billion on a year-to-date basis.
Also, according to Morning Consult’s consumer spending data for November, only four of the 19 categories tracked in its retail sales data registered gains. This includes sales at grocery stores, which increased 5% in November.
The retail sector has been struggling due to rising prices. However, sales still have been robust owing to higher demand. People have been aggressively cutting down on spending but they can’t do that with necessities like food and other essential commodities.
This has been driving grocery sales amid all the challenges. However, prices have been cooling lately, with consumers already seeing signs of inflation easing as growth in the CPI and the food-at-home index have slowed.
Also, online grocery sales have stayed elevated since the onset of the pandemic, although more people have been visiting physical stores this year on waning fears of COVID-19.
If pricing pressure eases, many consumers — particularly those who buy food — should be discouraged from cutting back on their spending, which will support economic expansion. Also, the U.S. GDP grew 2.9% in the third quarter, after declining in the first two quarters. This is yet another sign that the grocery market is poised to grow in the coming months, as demand is still high.
Our Choices
Given this situation, it would be wise to invest in these four food and grocery stocks. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MamaMancini's Holdings, Inc. is involved in the manufacturing & distribution of food products primarily in the United States. MMMB offers beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce and other similar Italian products.
MamaMancini's Holdings’ expected earnings growth rate for next year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 30 days. MMMB currently sports a Zacks Rank #1.
J&J Snack Foods Corp. is an American manufacturer, marketer and distributor of branded niche snack foods and frozen beverages for the food service and retail supermarket industries. Manufactured and distributed nationwide, JJSF’s principal products include SUPERPRETZEL, BAVARIAN BAKERY and other soft pretzels, ICEE and SLUSH PUPPIE frozen beverages, LUIGI'S, MINUTE MAID frozen juice bars and ices, WHOLE FRUIT sorbet and frozen fruit bars.
J&J Snack Foods’ expected earnings growth rate for next year is 20%. The Zacks Consensus Estimate for current-year earnings has improved 1.25% over the past 60 days. JJSF currently carries a Zacks Rank #2.
Ingredion Incorporated is an ingredients solutions provider specializing in nature-based sweeteners, starches and nutrition ingredients. INGR serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries.
Ingredion Incorporated’s expected earnings growth rate for next year is 19.8%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 30 days. INGR presently carries a Zacks Rank #2.
Conagra Brands, Inc. is one of the leading branded food companies of North America. CAG offers premium edible products, with refined focus on innovation. Conagra Brands maintains a highly dynamic product portfolio and incorporates alterations within it as per the preference pattern of end-users.
Conagra Brands’ expected earnings growth rate for next year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. CAG currently has a Zacks Rank #2.