5 Overvalued Stocks to Watch

3. B&G Foods, Inc. (NYSE:BGS)

Number of Hedge Fund Holders: 10

P/E Ratio as of September 19: 30.99

B&G Foods, Inc. (NYSE:BGS) is a New Jersey-based company that distributes shelf-stable and frozen foods in the United States, Canada, and Puerto Rico. B&G Foods, Inc. (NYSE:BGS)’s P/E multiple stands at 31, which renders it overvalued. The company fell short of Wall Street consensus on earnings and revenue in the June quarter. The adjusted EBITDA declined from $363 million as of March 1 to $310 million as of August 4. 

BMO Capital analyst Kenneth Zaslow on August 8 lowered the price target on B&G Foods, Inc. (NYSE:BGS) to $21 from $29 and reiterated a Market Perform rating on the shares. The analyst cited B&G Foods, Inc. (NYSE:BGS)’s Q2 earnings miss, which reflected rising input costs ahead of pricing actions. He further noted B&G Foods, Inc. (NYSE:BGS)’s slashed 2022 EBITDA outlook to $300 million-$320 million, reflecting surging inflation and ongoing supply chain constraints.

Among the hedge funds tracked by Insider Monkey, B&G Foods, Inc. (NYSE:BGS) was part of 10 public stock portfolios at the end of June 2022, compared to 11 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the biggest stakeholder of the company, with 919,357 shares worth roughly $22 million.