5 Best Coffee Stocks to Invest In

In this article, we discuss the 5 most volatile stocks to buy now. If you want to read our detailed analysis of the coffee industry, go directly to the 10 Best Coffee Stocks to Invest In.

5. The J.M. Smucker Company (NYSE:SJM)

Number of Hedge Fund Holders: 33

The J.M. Smucker Company (NYSE:SJM) ranks 5th on the list of 10 best coffee stocks to invest in. The food and beverage manufacturer based in Ohio distributes coffee through its notable brands Folgers, Bustelo, and the Dunkin’ Donuts range. In 2021, The J.M. Smucker Company (NYSE:SJM) reported over $2.37 billion in retails coffee sales.

In July, The J.M. Smucker Company (NYSE:SJM) increased its quarterly dividend to $0.99, a 10% increase from $0.90 per common share, which marks the 20th year in a row that the dividend has increased. Shares of The J.M. Smucker Company (NYSE:SJM) rose 18% in the last twelve months.

On June 4th, Stifel analyst Christopher Growe raised The J.M. Smucker Company’s (NYSE:SJM) price target to $135 from $125 and kept his Hold rating on the stock. The analyst mentioned that the company’s balance sheet remains solid.

The company has a market cap of $14.23 billion and offers a dividend yield of 3.02%. In the fiscal fourth quarter of 2021, The J.M. Smucker Company’s (NYSE:SJM) reported an EPS of $1.89, beating estimates of $1.67 per share. In the fiscal fourth quarter, the company’s revenue was $1.92 billion, beating revenue estimates by $0.04 billion. 

At the end of the first quarter of 2021, 33 hedge funds in the database of Insider Monkey held stakes worth $689 million in The J.M. Smucker Company’s (NYSE:SJM).

Roubaix Capital LLC mentioned J.M. Smucker Company’s (NYSE:SJM) in its Q4 2020 investor letter:

“Companies including J.M Smucker Company (SJM) have seen their sales accelerate to unsustainable levels that are not consistent with their mature end markets. We expect sales to slow and eventually give back some of the one-time gains caused by the unusual circumstances of 2020. Further, we question the sustainability of current peak valuations in the face of likely peak sales. We believe companies with such characteristics could face a combination of negative earnings revisions and lower valuations as the demand reality sets in this year. We also anticipate that companies that have benefited from consumers being homebound will see very challenging comparisons in 2021. No doubt, spending on home improvement and furnishing grew at unsustainable rates in 2020.”