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.
5 Grocery Stocks to Buy on Continued Rise in Online Sales
Read MoreHide Full Article
Online grocery sales in the United States are showing signs of rebounding. E-commerce grocery sales rose in December as people continued to spend more freely. This is yet another sign that inflation has started easing from its earlier highs and people are more confident about the economy bouncing back.
Groceries are necessities, and it’s difficult for consumers to cut down on staples, unlike discretionary items. Given this scenario, stocks like The Hershey Company (HSY - Free Report) , Conagra Brands, Inc. (CAG - Free Report) , Campbell Soup Company (CPB - Free Report) , Ingredion Incorporated (INGR - Free Report) and J&J Snack Foods Corp. (JJSF - Free Report) are likely to benefit in the near term.
Online Grocery Sales Rising
According to a new survey by Brick Meets Click and Mercatus, U.S. online grocery sales rose 2.4% year over year in December to $1.9 billion, as more households bought groceries online and higher order values.
Online sales increased as a result of higher pickup, which includes in-store, curbside, lockers, and drive-up. Pickups totaled $4.4 billion, increasing 14.7% in December. Ship-to-home orders via parcel carriers totaled $1.5 billion, while delivery purchases from first or third-party providers, including shop personnel and services like Instacart and Shipt, totaled $3.2 billion.
Overall, more than 50% of American households placed an online order for groceries in December, an increase of 4% on a year-over-year basis. Also, 5% more monthly active users chose pickup. The number of delivery users increased marginally.
The report mentions that cross-shopping also gained popularity in December, as more than 30% of monthly active users purchased groceries both online and from mass and grocery stores throughout the month, up 1.3% year over year.
The average rise in per-order spending on groceries and mass production was 4% and 12%, respectively.
This came as the Commerce Department said that sales at food and beverage outlets in the United States increased 0.9% in November after jumping 1.6% in October.
Online grocery sales have seen a significant increase despite a 0.6% decline in retail sales in November. Although there were record-breaking sales on Black Friday and Cyber Monday, retail sales actually declined in November.
On the other hand, sales at stores that sell food and drinks have been significantly increasing. Sales at food and beverage stores increased year over year by 7.7% to $859.06 billion in the first 11 months of 2022.
The retail industry has been struggling as a result of high commodity prices. Sales, however, have remained strong as a result of increased demand. Although people have been actively reducing their expenditures, they are unable to do so when it comes to necessities like food and other essential commodities.
Despite all the challenges, this has been boosting grocery sales. However, as the CPI and the food-at-home index have both slowed in recent months, consumers are already seeing signs of inflation lessening.
Additionally, despite the fact that more individuals are visiting physical stores this year due to subsiding COVID-19 worries, online grocery sales have remained high from the time of the pandemic.
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.
The Hershey Company is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. In addition, HSY manufactures pantry items like baking ingredients, toppings and beverages; and gum and mint refreshment products; snack bites and mixes, as well as spreads.
The Hershey Company’s expected earnings growth rate for the current year is 15.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the past 30 days. HSY currently carried a Zacks Rank #2.
Conagra Brands, Inc. is one of the leading branded food companies of North America. CAG offers premium edible products, with a focus on innovation. Conagra Brands maintains a highly dynamic product portfolio and incorporates alterations within it as per the preference pattern of the end-users.
Conagra Brands’ expected earnings growth rate for the current year is 11.9%. The Zacks Consensus Estimate for current-year earnings has improved 8.6% over the past 60 days. CAG currently has a Zacks Rank #1.
Campbell Soup Company is a worldwide manufacturer and marketer of high-quality, branded convenience food products. CPB’s brands are sold in approximately 120 countries, and its principal geographies include North America, France, Germany, Belgium, and Australia.
Campbell Soup Company’s expected earnings growth rate for the current year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. CPB presently sports a Zacks Rank #1.
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 the current year is 5.9%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 60 days. INGR presently carries a Zacks Rank #2.
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 the current year is 76.1%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. JJSF currently carries a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Grocery Stocks to Buy on Continued Rise in Online Sales
Online grocery sales in the United States are showing signs of rebounding. E-commerce grocery sales rose in December as people continued to spend more freely. This is yet another sign that inflation has started easing from its earlier highs and people are more confident about the economy bouncing back.
Groceries are necessities, and it’s difficult for consumers to cut down on staples, unlike discretionary items. Given this scenario, stocks like The Hershey Company (HSY - Free Report) , Conagra Brands, Inc. (CAG - Free Report) , Campbell Soup Company (CPB - Free Report) , Ingredion Incorporated (INGR - Free Report) and J&J Snack Foods Corp. (JJSF - Free Report) are likely to benefit in the near term.
Online Grocery Sales Rising
According to a new survey by Brick Meets Click and Mercatus, U.S. online grocery sales rose 2.4% year over year in December to $1.9 billion, as more households bought groceries online and higher order values.
Online sales increased as a result of higher pickup, which includes in-store, curbside, lockers, and drive-up. Pickups totaled $4.4 billion, increasing 14.7% in December. Ship-to-home orders via parcel carriers totaled $1.5 billion, while delivery purchases from first or third-party providers, including shop personnel and services like Instacart and Shipt, totaled $3.2 billion.
Overall, more than 50% of American households placed an online order for groceries in December, an increase of 4% on a year-over-year basis. Also, 5% more monthly active users chose pickup. The number of delivery users increased marginally.
The report mentions that cross-shopping also gained popularity in December, as more than 30% of monthly active users purchased groceries both online and from mass and grocery stores throughout the month, up 1.3% year over year.
The average rise in per-order spending on groceries and mass production was 4% and 12%, respectively.
This came as the Commerce Department said that sales at food and beverage outlets in the United States increased 0.9% in November after jumping 1.6% in October.
Online grocery sales have seen a significant increase despite a 0.6% decline in retail sales in November. Although there were record-breaking sales on Black Friday and Cyber Monday, retail sales actually declined in November.
On the other hand, sales at stores that sell food and drinks have been significantly increasing. Sales at food and beverage stores increased year over year by 7.7% to $859.06 billion in the first 11 months of 2022.
The retail industry has been struggling as a result of high commodity prices. Sales, however, have remained strong as a result of increased demand. Although people have been actively reducing their expenditures, they are unable to do so when it comes to necessities like food and other essential commodities.
Despite all the challenges, this has been boosting grocery sales. However, as the CPI and the food-at-home index have both slowed in recent months, consumers are already seeing signs of inflation lessening.
Additionally, despite the fact that more individuals are visiting physical stores this year due to subsiding COVID-19 worries, online grocery sales have remained high from the time of the pandemic.
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.
The Hershey Company is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. In addition, HSY manufactures pantry items like baking ingredients, toppings and beverages; and gum and mint refreshment products; snack bites and mixes, as well as spreads.
The Hershey Company’s expected earnings growth rate for the current year is 15.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the past 30 days. HSY currently carried a Zacks Rank #2.
Conagra Brands, Inc. is one of the leading branded food companies of North America. CAG offers premium edible products, with a focus on innovation. Conagra Brands maintains a highly dynamic product portfolio and incorporates alterations within it as per the preference pattern of the end-users.
Conagra Brands’ expected earnings growth rate for the current year is 11.9%. The Zacks Consensus Estimate for current-year earnings has improved 8.6% over the past 60 days. CAG currently has a Zacks Rank #1.
Campbell Soup Company is a worldwide manufacturer and marketer of high-quality, branded convenience food products. CPB’s brands are sold in approximately 120 countries, and its principal geographies include North America, France, Germany, Belgium, and Australia.
Campbell Soup Company’s expected earnings growth rate for the current year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. CPB presently sports a Zacks Rank #1.
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 the current year is 5.9%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 60 days. INGR presently carries a Zacks Rank #2.
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 the current year is 76.1%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. JJSF currently carries a Zacks Rank #2.