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SJM vs. POST: Which Food Stock Deserves a Spot in Your Cart?
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Key Takeaways
SJM is reshaping its portfolio with the Hostess buyout and recent brand divestitures.
POST is boosting sales through smart pricing and demand in Foodservice business.
POST's recent acquisitions in potatoes and value foods support a diversified growth strategy.
Food companies are at a crossroads. Price sensitivity is rising, volume trends remain uneven, and brand loyalty is being tested as consumers seek value across store aisles. In this environment, the companies that can protect their margins, manage input costs, and adapt to shifting consumption habits are most likely to edge ahead.
Two such players in the food space are The J. M. Smucker Company (SJM - Free Report) and Post Holdings, Inc. (POST - Free Report) . While both are navigating the same macroeconomic headwinds, their strategies and business models take very different paths. The J. M. Smucker is pursuing a bold transformation with its Hostess Brands acquisition, while Post Holdings continues to quietly build momentum through disciplined execution and niche market expansion.
As defensive stocks gain favor amid economic uncertainty, the faceoff between SJM and POST boils down to a few critical factors — earnings quality, pricing power and operational agility. Now the question is — Which one is better positioned to deliver long-term value for investors?
The Case for SJM
The J.M. Smucker is undergoing a strategic transformation aimed at sharpening its portfolio and achieving long-term growth. The company continues to reshape its business through disciplined acquisitions and divestitures. In March 2025, The J.M. Smucker divested its Cloverhill and Big Texas brands, aligning with its strategy to streamline operations and focus on high-growth categories. A milestone in this transformation was the acquisition of Hostess Brands in late 2023 — a deal that added iconic sweet snack labels like Twinkies, Ding Dongs and HoHos to its already strong brand portfolio.
The Hostess acquisition strengthens The J.M. Smucker’s position in the fast-growing snacking category, where consumer demand is being driven by convenience and lifestyle shifts. The company also continues to benefit from growth in its International and Away From Home segment, with fourth-quarter fiscal 2025 sales rising 3% year over year. Strong coffee pricing, increased Uncrustables demand and global momentum in the company’s coffee business are driving gains across channels. Segment profit jumped 13%, reflecting better pricing and lower pre-production expenses from its new Uncrustables facility.
However, the transition has not come without short-term pain. In the fiscal fourth quarter, The J.M. Smucker’s adjusted gross profit declined 9% year over year due to higher input costs, weaker volume/mix and recent divestitures. The company has also forecasted continued pressure in fiscal 2026, with gross margins expected to be between 35.5% and 36%, and ongoing tariff impacts affecting the U.S. Retail Coffee segment.
The J.M. Smucker is also ramping up investments in marketing to support key brands like Cafe Bustelo and Uncrustables, contributing to a 3% rise in selling, distribution and administrative (SD&A) expenses. While these investments are intended to fuel long-term growth, they contribute to near-term cost headwinds as SJM navigates a dynamic operating environment.
The Case for POST
Post Holdings continues to strengthen its position as a consistent performer in the food industry, with its Foodservice segment playing a critical role in driving top-line growth. In the second quarter of fiscal 2025, Foodservice net sales rose 9.6% year over year to $607.9 million, supported by a 2.8% increase in volumes. This momentum was driven by strong demand for ready-to-drink shakes and value-added egg products, as well as effective pricing strategies that helped navigate challenges such as limited egg supply and weaker foot traffic.
Strategic pricing actions have been key to Post Holdings’ ability to protect margins amid inflationary pressures. The company has implemented targeted price increases across key segments, allowing it to offset input cost inflation and volume softness. These efforts reflect strong cost discipline and underscore Post Holdings’ ability to maintain profitability in an environment where many food companies are seeing margin compression.
Acquisitions remain a core pillar of POST’s growth strategy. The recent acquisition of 8th Avenue Food & Provisions, completed in July 2025, expands its presence in value-focused categories and enhances its ability to serve a wider range of consumers. Earlier in March, the acquisition of Potato Products of Idaho marked Post Holdings’ entry into the refrigerated and frozen potato space. Additional deals in pet food and cereals continue to strengthen the company’s brand portfolio and support long-term growth.
Despite ongoing macroeconomic headwinds, including cautious consumer spending and inflation-driven volume declines, Post Holdings benefits from a well-diversified portfolio and multi-channel reach. Its disciplined execution, consistent pricing strategy and focus on high-return acquisitions position POST as one of the more resilient food stocks in today’s challenging landscape.
How Does the Zacks Consensus Estimate Compare for POST & SJM?
The Zacks Consensus Estimate for Post Holdings’ fiscal 2025 earnings per share (EPS) has remained unchanged over the past 30 days at $6.63. In comparison, the bottom-line estimate for The J.M. Smucker’s has moved down 4% to $9.28 during the same period. This comparison highlights a more optimistic profitability outlook for POST relative to SJM.
Image Source: Zacks Investment Research
Price Performance & Valuation of POST & SJ
Post Holdings trades at a forward P/E of 14.54x, slightly above The J.M. Smucker’s 11.1x, but the premium reflects POST’s stronger earnings momentum and cleaner execution. In terms of price performance, POST’s stock has declined 6.9% in the past three months, outperforming SJM’s 8.8% drop. The valuation gap is justified by Post Holdings’ steady margin management, successful M&A integration and diversified portfolio.
Image Source: Zacks Investment Research
Bottom Line
Both The J.M. Smucker and Post Holdings bring solid brand equity and category relevance to the table. SJM is in rebuild mode, aiming to reshape its portfolio for long-term gain. However, that comes with risk. POST, by contrast, is growing through precision — expanding selectively, pricing smartly and managing margins effectively. In today’s inflation-sensitive market, that kind of steady execution makes Post Holdings the safer and smarter pick.
Image: Bigstock
SJM vs. POST: Which Food Stock Deserves a Spot in Your Cart?
Key Takeaways
Food companies are at a crossroads. Price sensitivity is rising, volume trends remain uneven, and brand loyalty is being tested as consumers seek value across store aisles. In this environment, the companies that can protect their margins, manage input costs, and adapt to shifting consumption habits are most likely to edge ahead.
Two such players in the food space are The J. M. Smucker Company (SJM - Free Report) and Post Holdings, Inc. (POST - Free Report) . While both are navigating the same macroeconomic headwinds, their strategies and business models take very different paths. The J. M. Smucker is pursuing a bold transformation with its Hostess Brands acquisition, while Post Holdings continues to quietly build momentum through disciplined execution and niche market expansion.
As defensive stocks gain favor amid economic uncertainty, the faceoff between SJM and POST boils down to a few critical factors — earnings quality, pricing power and operational agility. Now the question is — Which one is better positioned to deliver long-term value for investors?
The Case for SJM
The J.M. Smucker is undergoing a strategic transformation aimed at sharpening its portfolio and achieving long-term growth. The company continues to reshape its business through disciplined acquisitions and divestitures. In March 2025, The J.M. Smucker divested its Cloverhill and Big Texas brands, aligning with its strategy to streamline operations and focus on high-growth categories. A milestone in this transformation was the acquisition of Hostess Brands in late 2023 — a deal that added iconic sweet snack labels like Twinkies, Ding Dongs and HoHos to its already strong brand portfolio.
The Hostess acquisition strengthens The J.M. Smucker’s position in the fast-growing snacking category, where consumer demand is being driven by convenience and lifestyle shifts. The company also continues to benefit from growth in its International and Away From Home segment, with fourth-quarter fiscal 2025 sales rising 3% year over year. Strong coffee pricing, increased Uncrustables demand and global momentum in the company’s coffee business are driving gains across channels. Segment profit jumped 13%, reflecting better pricing and lower pre-production expenses from its new Uncrustables facility.
However, the transition has not come without short-term pain. In the fiscal fourth quarter, The J.M. Smucker’s adjusted gross profit declined 9% year over year due to higher input costs, weaker volume/mix and recent divestitures. The company has also forecasted continued pressure in fiscal 2026, with gross margins expected to be between 35.5% and 36%, and ongoing tariff impacts affecting the U.S. Retail Coffee segment.
The J.M. Smucker is also ramping up investments in marketing to support key brands like Cafe Bustelo and Uncrustables, contributing to a 3% rise in selling, distribution and administrative (SD&A) expenses. While these investments are intended to fuel long-term growth, they contribute to near-term cost headwinds as SJM navigates a dynamic operating environment.
The Case for POST
Post Holdings continues to strengthen its position as a consistent performer in the food industry, with its Foodservice segment playing a critical role in driving top-line growth. In the second quarter of fiscal 2025, Foodservice net sales rose 9.6% year over year to $607.9 million, supported by a 2.8% increase in volumes. This momentum was driven by strong demand for ready-to-drink shakes and value-added egg products, as well as effective pricing strategies that helped navigate challenges such as limited egg supply and weaker foot traffic.
Strategic pricing actions have been key to Post Holdings’ ability to protect margins amid inflationary pressures. The company has implemented targeted price increases across key segments, allowing it to offset input cost inflation and volume softness. These efforts reflect strong cost discipline and underscore Post Holdings’ ability to maintain profitability in an environment where many food companies are seeing margin compression.
Acquisitions remain a core pillar of POST’s growth strategy. The recent acquisition of 8th Avenue Food & Provisions, completed in July 2025, expands its presence in value-focused categories and enhances its ability to serve a wider range of consumers. Earlier in March, the acquisition of Potato Products of Idaho marked Post Holdings’ entry into the refrigerated and frozen potato space. Additional deals in pet food and cereals continue to strengthen the company’s brand portfolio and support long-term growth.
Despite ongoing macroeconomic headwinds, including cautious consumer spending and inflation-driven volume declines, Post Holdings benefits from a well-diversified portfolio and multi-channel reach. Its disciplined execution, consistent pricing strategy and focus on high-return acquisitions position POST as one of the more resilient food stocks in today’s challenging landscape.
How Does the Zacks Consensus Estimate Compare for POST & SJM?
The Zacks Consensus Estimate for Post Holdings’ fiscal 2025 earnings per share (EPS) has remained unchanged over the past 30 days at $6.63. In comparison, the bottom-line estimate for The J.M. Smucker’s has moved down 4% to $9.28 during the same period. This comparison highlights a more optimistic profitability outlook for POST relative to SJM.
Image Source: Zacks Investment Research
Price Performance & Valuation of POST & SJ
Post Holdings trades at a forward P/E of 14.54x, slightly above The J.M. Smucker’s 11.1x, but the premium reflects POST’s stronger earnings momentum and cleaner execution. In terms of price performance, POST’s stock has declined 6.9% in the past three months, outperforming SJM’s 8.8% drop. The valuation gap is justified by Post Holdings’ steady margin management, successful M&A integration and diversified portfolio.
Image Source: Zacks Investment Research
Bottom Line
Both The J.M. Smucker and Post Holdings bring solid brand equity and category relevance to the table. SJM is in rebuild mode, aiming to reshape its portfolio for long-term gain. However, that comes with risk. POST, by contrast, is growing through precision — expanding selectively, pricing smartly and managing margins effectively. In today’s inflation-sensitive market, that kind of steady execution makes Post Holdings the safer and smarter pick.
At present, POST carries a Zacks Rank #3 (Hold), while SJM has a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.