Shelf-Stable Food Stocks Q2 Recap: Benchmarking Campbell's (NASDAQ:CPB)

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the shelf-stable food industry, including Campbell's (NASDAQ:CPB) and its peers.

As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

The 21 shelf-stable food stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.3% since the latest earnings results.

Campbell's (NASDAQ:CPB)

With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ:CPB) is a packaged food company with an illustrious portfolio of brands.

Campbell's reported revenues of $2.32 billion, up 1.2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

Interestingly, the stock is up 4.8% since reporting and currently trades at $32.96.

Read our full report on Campbell's here, it’s free.

Best Q2: Hershey (NYSE:HSY)

Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE:HSY) is an iconic company known for its chocolate products.

Hershey reported revenues of $2.61 billion, up 26% year on year, outperforming analysts’ expectations by 3.1%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA and organic revenue estimates.

Hershey delivered the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $185.56.

Is now the time to buy Hershey? Access our full analysis of the earnings results here, it’s free.

Slowest Q2: Hain Celestial (NASDAQ:HAIN)

Sold in over 75 countries around the world, Hain Celestial (NASDAQ:HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.

Hain Celestial reported revenues of $363.3 million, down 13.2% year on year, falling short of analysts’ expectations by 2.3%. It was a disappointing quarter as it posted a significant miss of analysts’ organic revenue and EBITDA estimates.

Hain Celestial delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 26.4% since the results and currently trades at $1.59.

Read our full analysis of Hain Celestial’s results here.

TreeHouse Foods (NYSE:THS)

Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE:THS) produces a wide range of private-label foods for grocery and food service customers.

TreeHouse Foods reported revenues of $801.4 million, up 1.6% year on year. This number surpassed analysts’ expectations by 1.7%. It was a strong quarter as it also logged a beat of analysts’ EPS and EBITDA estimates.

The stock is down 15.3% since reporting and currently trades at $17.43.

Read our full, actionable report on TreeHouse Foods here, it’s free.

B&G Foods (NYSE:BGS)

Started as a small grocery store in New York City, B&G Foods (NYSE:BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

B&G Foods reported revenues of $424.4 million, down 4.5% year on year. This print came in 1.2% below analysts' expectations. It was a softer quarter as it also logged EPS in line with analysts’ estimates and a miss of analysts’ EBITDA estimates.

B&G Foods had the weakest full-year guidance update among its peers. The stock is up 8.2% since reporting and currently trades at $4.47.

Read our full, actionable report on B&G Foods here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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