Here is What You Need to Know Before Investing in B&G Foods, Inc. (BGS)

B&G Foods, Inc. (NYSE:BGS) is among the 10 Most Undervalued Stocks to Buy for Under $5. Its shares have declined 37% year-to-date, primarily due to weak financial results, lowered guidance, high debt, and a challenging environment in the packaged foods industry.

A busy supermarket with shelves full of packaged foods.

During the first quarter of fiscal 2025, the company reported revenue of $425.4 million, a 10.5% decrease from the prior year’s period. Adjusted diluted earnings per share stood at $0.04, falling shy of estimates by 10 cents.

Investor sentiment has also been dampened by B&G Foods, Inc. (NYSE:BGS) adjusting its net sales and EBITDA guidance down for the fiscal year, amid a soft start to 2025 and ongoing heightened tensions around tariffs.

2025 has been a challenging year for stocks in the food packaging industry, with higher prices forcing consumers to seek affordable options. There has also been a noticeable shift in consumer trends toward healthier foods and weight-loss drugs, resulting in waning demand for packaged foods.

B&G Foods, Inc. (NYSE:BGS) is aiming to stabilize costs and improve profitability through strategic divestitures. In May, the company sold its Don Pepino and Sclafani brands to Violet Foods. Despite challenges, the stock is trading at a bargain, given its low forward price-earnings ratio.

While we acknowledge the potential of BGS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.