SJM Should I Buy
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J.M. Smucker Co. (SJM) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is facing headwinds from declining net income, EPS, and gross margin, alongside negative analyst sentiment and limited upside potential in the short term. While the stock has some support at current levels, the lack of strong positive catalysts and weak financial performance suggest holding off on a purchase for now.
The MACD histogram is positive at 0.555, indicating a bullish trend, but it is contracting. RSI is at 75.13, which is neutral, and moving averages are converging, showing no clear directional trend. The stock is trading near its resistance level (R1: 111.827), which may limit further upside in the short term.
The stock is benefiting from a market shift toward consumer staples as investors move away from software stocks. Additionally, the company's revenue increased by 2.59% YoY in Q2 2026.
Analysts have downgraded the stock with reduced price targets, citing competitive risks and muted pricing. The stock is also expected to decline slightly over the next week (-2.23%) and month (-0.28%).
In Q2 2026, revenue increased by 2.59% YoY to $2.33 billion. However, net income dropped significantly to $241.3 million (-1084.90% YoY), and EPS fell to 2.26 (-1082.61% YoY). Gross margin also decreased to 36.17% (-1.69% YoY), indicating weaker profitability.
Analysts have a neutral-to-negative sentiment on the stock. Morgan Stanley downgraded the stock to Equal Weight with a reduced price target of $105, citing competitive risks and limited margin recovery. Other firms, including TD Cowen, UBS, and Stifel, also lowered price targets, reflecting concerns about muted pricing and weaker gross margins.
