Snack food company J&J Snack Foods (NASDAQ:JJSF) met Wall Streets revenue expectations in Q3 CY2025, but sales fell by 3.9% year on year to $410.2 million. Its GAAP profit of $0.58 per share was 55% below analysts’ consensus estimates.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. But they’re also double-edged swords as they often lag in booming conditions, and this pattern has persisted recently.
Over the past six months, the industry has recorded a loss of 7.2%, a far cry from the S&P 500’s 22.6% ascent.
Hitting a new 52-week low can be a pivotal moment for any stock.
These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
Let’s dig into the relative performance of J&J Snack Foods (NASDAQ:JJSF) and its peers as we unravel the now-completed Q2 shelf-stable food earnings season.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how shelf-stable food stocks fared in Q2, starting with Hershey (NYSE:HSY).
The past year hasn't been kind to the stocks featured in this article.
Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Shares of snack food company J&J Snack Foods (NASDAQ:JJSF)
jumped 3.2% in the afternoon session after the release of a favorable Consumer Price Index (CPI) report, which showed inflation cooling more than anticipated. The July report from the Bureau of Labor Statistics indicated a year-over-year inflation rate of 2.7%, just below the 2.8% economists had forecast. This suggests that price pressures on consumers may be easing. Particularly beneficial for the sector was the news that the food index remained flat, with grocery prices even declining by 0.1% month-over-month. This development is seen as a positive for the profitability of food, beverage, and personal care companies, as lower input costs and increased consumer purchasing power could boost sales. A Federal Reserve official's comments on the same day, noting that consumer spending fundamentals remain solid, further bolstered investor confidence in the sector's resilience.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Snack food company J&J Snack Foods (NASDAQ:JJSF) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 3.3% year on year to $454.3 million. Its non-GAAP profit of $2 per share was 13.4% above analysts’ consensus estimates.
