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TreeHouse Foods (THS) Up 7% in a Month: What You Should Know
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TreeHouse Foods, Inc. (THS - Free Report) has demonstrated success, with its stock increasing by 6.7% over the past month. This surge stands out against the decline of 0.1% in the Zacks Food - Miscellaneous industry, and it also surpasses the broader Zacks Consumer Staple sector's marginal return of 1.1% and the S&P 500's return of 2%. This performance highlights TreeHouse Foods' strong position and resilience in the market.
Institutional investors and hedge funds play a significant role in the stock market by influencing stock prices through their large-scale buying and selling activities. The recent interest in TreeHouse Foods from these investors likely reflects their confidence in the company's growth prospects and strategic initiatives.
Closing at $38.18 as of Jul 16, TreeHouse Foods is trading above its 50-day moving average, indicating solid upward momentum.
From the valuation perspective, the company remains attractively valued relative to industry peers. With a forward 12-month price-to-earnings ratio of 14.44, below the industry average of 15.34, the stock presents an appealing opportunity for value-oriented investors. Supported by a robust Value Score of B, TreeHouse Foods stands poised for potential appreciation, aligning with its strong growth prospects.
Image Source: Zacks Investment Research
Product Offering - A Driving Factor
TreeHouse Foods has been making significant strides with the growth of private-label groceries in North America, driven by consumer demand for value and quality, especially amidst economic uncertainties. Concurrently, the shift toward snacking as a preferred consumption habit aligns well with the company’s product offerings.
The consistent market share gains for private brands over the past decades underscore TreeHouse Foods' ability to meet consumer needs effectively and, at the same time, maintain competitive pricing relative to national brands. This upswing has contributed to an increased volume growth in private brand sales despite challenges faced by national brands.
This Zacks Rank #2 (Buy) company is well placed by prioritizing improvements in supply chain efficiency and superior service delivery, which aims to drive organic growth and create sustained value for its stakeholders. Moreover, TreeHouse Foods' strategic acquisitions in the coffee and pretzel sectors, along with the annual volume contribution from Bick's pickle business, are expected to bolster the company’s top-line performance.
The progress made in executing 2024 plans, particularly in categories like cookies, refrigerated dough, pickles and pretzels, indicates strong momentum going into the second half of the year. These efforts are aimed not only at expanding product offerings but also at positioning the company favorably to capture new sales opportunities and drive volume growth.
Wrapping Up
For fiscal 2024, the company anticipates net sales of $3.43-$3.5 billion, which indicates growth of nearly flat to 2% from the 2023 reported level. Management expects the organic volume and mix to be slightly positive in the year, offset by modest pricing deflation. However, gains from the recent acquisitions are likely to positively impact the volume and mix.
TreeHouse Foods appears to be demonstrating strong operational performance and strategic positioning within the food industry, particularly with its focus on snacks, beverages and other key categories. The company’s efforts to enhance product offerings, improve supply chain efficiency, and execute growth plans bode well for its future prospects.
Given the above positives, TreeHouse Foods emerges as a compelling candidate to consider adding to your portfolio.
3 Other Picks You Can’t Miss
Here, we have highlighted three other top-ranked stocks, namely, Colgate-Palmolive (CL - Free Report) , Church & Dwight Co., Inc. (CHD - Free Report) and Ollie's Bargain Outlet (OLLI - Free Report) .
The Zacks Consensus Estimate for Colgate-Palmolive’s current fiscal-year sales and earnings suggests growth of 3.8% and nearly 9.3%, respectively, from the year-ago reported numbers.
Church & Dwight Co. develops, manufactures and markets a broad range of household, personal care and specialty products. The company currently carries a Zacks Rank #2. CHD has a trailing four-quarter earnings surprise of 9.6%, on average.
The Zacks Consensus Estimate for Church & Dwight’s current fiscal-year sales and earnings suggests growth of 4.6% and 9.1%, respectively, from the year-ago reported numbers.
Ollie's Bargain, the extreme-value retailer of brand-name merchandise, currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and earnings indicates a rise of around 7.9% and 12.0%, respectively, from the year-earlier levels.
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TreeHouse Foods (THS) Up 7% in a Month: What You Should Know
TreeHouse Foods, Inc. (THS - Free Report) has demonstrated success, with its stock increasing by 6.7% over the past month. This surge stands out against the decline of 0.1% in the Zacks Food - Miscellaneous industry, and it also surpasses the broader Zacks Consumer Staple sector's marginal return of 1.1% and the S&P 500's return of 2%. This performance highlights TreeHouse Foods' strong position and resilience in the market.
Institutional investors and hedge funds play a significant role in the stock market by influencing stock prices through their large-scale buying and selling activities. The recent interest in TreeHouse Foods from these investors likely reflects their confidence in the company's growth prospects and strategic initiatives.
Closing at $38.18 as of Jul 16, TreeHouse Foods is trading above its 50-day moving average, indicating solid upward momentum.
From the valuation perspective, the company remains attractively valued relative to industry peers. With a forward 12-month price-to-earnings ratio of 14.44, below the industry average of 15.34, the stock presents an appealing opportunity for value-oriented investors. Supported by a robust Value Score of B, TreeHouse Foods stands poised for potential appreciation, aligning with its strong growth prospects.
Image Source: Zacks Investment Research
Product Offering - A Driving Factor
TreeHouse Foods has been making significant strides with the growth of private-label groceries in North America, driven by consumer demand for value and quality, especially amidst economic uncertainties. Concurrently, the shift toward snacking as a preferred consumption habit aligns well with the company’s product offerings.
The consistent market share gains for private brands over the past decades underscore TreeHouse Foods' ability to meet consumer needs effectively and, at the same time, maintain competitive pricing relative to national brands. This upswing has contributed to an increased volume growth in private brand sales despite challenges faced by national brands.
This Zacks Rank #2 (Buy) company is well placed by prioritizing improvements in supply chain efficiency and superior service delivery, which aims to drive organic growth and create sustained value for its stakeholders. Moreover, TreeHouse Foods' strategic acquisitions in the coffee and pretzel sectors, along with the annual volume contribution from Bick's pickle business, are expected to bolster the company’s top-line performance.
The progress made in executing 2024 plans, particularly in categories like cookies, refrigerated dough, pickles and pretzels, indicates strong momentum going into the second half of the year. These efforts are aimed not only at expanding product offerings but also at positioning the company favorably to capture new sales opportunities and drive volume growth.
Wrapping Up
For fiscal 2024, the company anticipates net sales of $3.43-$3.5 billion, which indicates growth of nearly flat to 2% from the 2023 reported level. Management expects the organic volume and mix to be slightly positive in the year, offset by modest pricing deflation. However, gains from the recent acquisitions are likely to positively impact the volume and mix.
TreeHouse Foods appears to be demonstrating strong operational performance and strategic positioning within the food industry, particularly with its focus on snacks, beverages and other key categories. The company’s efforts to enhance product offerings, improve supply chain efficiency, and execute growth plans bode well for its future prospects.
Given the above positives, TreeHouse Foods emerges as a compelling candidate to consider adding to your portfolio.
3 Other Picks You Can’t Miss
Here, we have highlighted three other top-ranked stocks, namely, Colgate-Palmolive (CL - Free Report) , Church & Dwight Co., Inc. (CHD - Free Report) and Ollie's Bargain Outlet (OLLI - Free Report) .
Colgate-Palmolive, which manufactures and sells consumer products, currently carries a Zacks Rank #2. CL delivered an earnings surprise of 4.4% in the trailing four quarters, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Colgate-Palmolive’s current fiscal-year sales and earnings suggests growth of 3.8% and nearly 9.3%, respectively, from the year-ago reported numbers.
Church & Dwight Co. develops, manufactures and markets a broad range of household, personal care and specialty products. The company currently carries a Zacks Rank #2. CHD has a trailing four-quarter earnings surprise of 9.6%, on average.
The Zacks Consensus Estimate for Church & Dwight’s current fiscal-year sales and earnings suggests growth of 4.6% and 9.1%, respectively, from the year-ago reported numbers.
Ollie's Bargain, the extreme-value retailer of brand-name merchandise, currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and earnings indicates a rise of around 7.9% and 12.0%, respectively, from the year-earlier levels.