Nomad Foods Limited (NOMD Quick QuoteNOMD - Free Report) , a leading frozen foods company in Europe with brands like Birds Eye, Findus, Iglo, Ledo and Frikom, is currently trading at a compelling discount relative to its industry and broader market benchmarks. NOMD stock trades at a forward 12-month price-to-earnings (P/E) ratio of 8.12, lower than the industry’s average of 16.02. Adding to its appeal, NOMD holds a Value Score of A, reflecting strong fundamentals and positioning the stock as an attractive opportunity for long-term, value-focused investors.

NOMD P/E Ratio (Forward 12 Months)

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This valuation becomes even more compelling when compared to other major food players such as Mondelez International, Inc. (MDLZ Quick QuoteMDLZ - Free Report) , The Hershey Company (HSY Quick QuoteHSY - Free Report) and McCormick & Company, Incorporated (MKC Quick QuoteMKC - Free Report) . Mondelez, Hershey, and McCormick are all trading at higher forward P/E ratios of 21.18, 27.42, and 23.78, respectively.

While valuation highlights NOMD’s attractiveness, recent stock performance suggests an entry point may be emerging. NOMD’s shares have lost 9.4% over the past three months, underperforming the industry’s declines of 0.2% and the S&P 500's growth of 9.5%. NOMD has even underperformed the broader Consumer Staples sector’s gain of 3.6%. In comparison, Mondelez gained 4.2%, while Hershey and McCormick dropped 1.4% and 5.7%, respectively.

NOMD Price Performance vs. Industry, S&P 500 & Sector

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Closing at $17.43 (as of June 11, 2025), NOMD stands about 16.2% below its 52-week high of $20.81, reached on March 5, 2025. This pullback, combined with the company’s strong long-term positioning and undervaluation relative to peers, may present a timely opportunity for investors seeking value in the defensive consumer staples space.

Inside Nomad Foods’ Growth Strategy

The company continues to highlight its portfolio strength in frozen foods, particularly in lean proteins and green vegetables. Its business model, commercial flywheel, is driving consistent innovation, impactful merchandising, and compelling advertising. Despite near-term market volatility, Nomad Foods remains confident in its strategy and sees ongoing strength across its core categories.

NOMD is actively investing in innovation to keep its portfolio modern and relevant, particularly within its must-win battles like fish. The company has launched new campaigns, including a Captain’s Discoveries product line and the relaunch of the Fish Bar sub-brand in Italy. These efforts combine strong advertising, renovation, and flavor-forward innovation to drive trial and engagement. NOMD plans to increase innovation as a percentage of sales in 2025.

Growth Platforms remain a critical component of NOMD’s strategy, with the company reporting a 36% year-over-year sales increase in these segments during the first quarter of 2025. Chicken continues to be a standout performer, while prepared meals in Germany doubled their retail sales year-over-year, and frozen chips in the U.K. reached nearly a 2% market share, up from 0% a year ago. These gains reflect the success of targeted initiatives within Growth Platforms, supported by focused execution and continued investment in key categories.

NOMD’s playbook is expanding across markets, with Italy serving as a model for revitalizing the fish category. The Fish Bar line has driven category growth by appealing to younger, higher-income consumers. In the first quarter, retail sales of NOMD’s fish products in Italy rose 9% year over year, reflecting the success of this strategy and supporting its broader rollout across key European markets.

Estimate Revisions Favoring NOMD Stock

Reflecting positive sentiment around Nomad Foods, the Zacks Consensus Estimate for earnings per share (EPS) has seen upward revisions. Over the past 60 days, the estimate for the current fiscal year has increased by 8 cents to $2.07, while the estimate for next fiscal year has risen by 11 cents to $2.25. These upward revisions signal improving sentiment among analysts. Based on current projections, NOMD is expected to deliver year-over-year EPS growth of 7.3% this year and 8.7% next year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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What Could Derail Nomad Foods?

Nomad Foods is facing widespread retailer inventory destocking across European markets, leading to a gap of nearly 4 percentage points between sell-in and retail sell-through during the first quarter of 2025. While retail sell-through increased slightly by 0.2%, organic sales declined by 3.6%. Looking ahead, the company expects retailers to maintain these lower inventory levels and does not anticipate a restocking benefit in future quarters.

Nomad Foods is experiencing rising input costs, particularly in chicken and red meat, driven in part by supply disruptions like avian flu in Europe. On its last earnings call, management indicated that recent inflationary pressures have been building and will require price adjustments to offset. However, these adjustments won’t take effect immediately, creating a short-term gap between higher costs and recovery. This cost-price lag may pressure profitability in the near term.

How Should You Approach NOMD Stock?

Despite near-term challenges, Nomad Foods has demonstrated consistent strategic execution, category leadership, and market adaptability, reinforcing its position in the European food industry. The company continues to invest in innovation and long-term brand strength, supported by solid fundamentals and resilient consumer demand. With a compelling valuation and rising earnings estimates, this Zacks Rank #1 (Strong Buy) stock stands out as an attractive opportunity for value-focused investors seeking exposure to the food sector. You can see the complete list of today’s Zacks #1 Rank stocks here.