CPI read: Food inflation moderates in key categories; consumers are still paying a lot on a pre-pandemic comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2024
0mins
Source: SeekingAlpha
- Inflation Trends: The Consumer Price Index report for March showed a 3.6% year-over-year increase in the core rate, slightly down from the previous month.
- Food Price Changes: Food prices varied, with food away from home up 4.1%, while food at home increased by just 1.1%. Some categories like bread, breakfast cereal, and eggs saw declining inflation rates.
- Factors Affecting Prices: Transportation and shipping costs in the U.S. contributed to moderating inflation in certain food groups. Consumer resistance to pricing and packaging changes also influenced demand for specific food items.
- Stock Performance: Packaged food stocks like Lifeway Foods, WK Kellogg, and Whole Earth Brands have shown strong year-to-date returns. However, companies like Hain Celestial and Beyond Meat have experienced stock declines.
- Additional News: The Kraft Heinz Company's Q1 results, General Mills' performance, and calls for action on grocery store price-fixing have been highlighted in recent news.
Analyst Views on POST
Wall Street analysts forecast POST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for POST is 126.56 USD with a low forecast of 105.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 98.100
Low
105.00
Averages
126.56
High
150.00
Current: 98.100
Low
105.00
Averages
126.56
High
150.00
About POST
Post Holdings, Inc. is a consumer-packaged goods holding company with businesses operating in the center-of-the-store, refrigerated, foodservice and food ingredient categories. Its businesses include Post Consumer Brands, Weetabix, Michael Foods, and Bob Evans Farms. Its segments include Post Consumer Brands, Weetabix, Foodservice, and Refrigerated Retail. Post Consumer Brands segment manufactures, markets and sells human and pet food products, primarily in the ready-to-eat (RTE) cereal, granola, hot cereal, nut butter and dog and cat food categories in North America. Weetabix segment markets and distributes branded and private label RTE cereal products. Weetabix is a manufacturer's breakfast cereals category, with its brands being Weetabix and Alpen. Foodservice segment produces and distributes egg and potato products through the foodservice and food ingredient channels. Refrigerated Retail segment produces and distributes side dishes, eggs and egg products, sausage, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
