The J. M. Smucker Company (SJM) Just Doesn't Have The Twinkies Pricing Power, Says Jim Cramer

We recently published 11 Fresh Stocks On Jim Cramer’s Radar. The J. M. Smucker Company (NYSE:SJM) is one of the stocks Jim Cramer recently discussed.

The J. M. Smucker Company (NYSE:SJM)’s stock was dealt a blow this month after it fell by 4.4% following the firm’s first-quarter earnings report, which saw it miss analyst profit estimates. The earnings saw the firm post $1.90 in adjusted profit per share while analysts had penciled in $1.93. The J. M. Smucker Company (NYSE:SJM) has struggled with inflationary pressures, and in his previous comments about the firm, Cramer has continually stressed that its acquisition of Hostess Brands continues to weigh down on the firm. This time, he remarked that The J. M. Smucker Company (NYSE:SJM) simply doesn’t have the pricing power to maintain profitability:

“It’s pricing pressure. I mean when I looked at that number yesterday from Smucker, and I liked what they’re doing to pet food. I like Cafe Bustello, but David, in the end, Twinkies, no pricing power. Uh uh. Not in the year of GLP-1. Right.”

The CNBC TV host previously discussed The J. M. Smucker Company (NYSE:SJM) in detail. Here is what he said:

“Okay, David, Smucker’s the stock as Carl mentioned, is down really badly and September 11 of 2023 they bought a company called Hostess. Okay. And they paid 5.6 billion dollars including debt and they are still paying the price for that because this was still while they were trying to cut the, they’re trying to do everything they can to rationalize this. It still keeps hurting them. Coffee was okay, they raised the price of coffee because of the, obviously, inflation. And tariffs, Brazil. I liked the Uncrustables, Uncrustables are doing incredibly well, number one in frozen food, but it’s going to keep coming back to this sweet baked snacks. And David I just can’t be happy about it. I just can’t. By the way, they are, they’ve done what they can, pet food, which is fine. So you have pet food, okay, coffee, pretty good, Uncrustables, great. But you have this just black hole.

“Anyway, Smucker I think is probably a buy down here. They’ve got a good yield. The balance sheet’s okay. They made a mistake, and they’re paying the price for something they did two years ago. But I don’t like the food stocks, they’re still not making a comeback. Including General Mills, still not making a comeback.”

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Disclosure: None. This article is originally published at Insider Monkey.