Jim Cramer sees Seneca Foods Corporation (NASDAQ:SENEA) as an attractive food stock after its sharp rally, but he wants investors to leave room for a further pullback. During the September 10 episode of Mad Money, he noted that the shares had recently fallen about 11% from their high the previous week. He added:
Looking at the chart, you’d think this was an AI data center company. The stock’s up 256% over the past three years, nearly 70% year to date.
Cramer said its appeal starts with its exposure to both branded and private-label products:
They don’t care whether you’re buying the premium nationally branded stuff or the cheap private-label knockoffs because they package everything.
Seneca reported fiscal first-quarter 2027 revenue of $405.2 million, up 36.2% year over year, while diluted EPS increased to $2.85 from $2.14. Management attributed the revenue growth to the Green Giant U.S. frozen acquisition, private-label growth and the timing of contract-packaging sales. Cramer credited the Green Giant transaction with helping drive the improvement after Seneca acquired B&G Foods’ U.S. frozen business in March.
B&G has not been a well-run company, to say the least. It’s been a real donor here for Seneca, and these guys clearly know what they’re doing because the first full quarter since that acquisition showed the impact.
Cramer Weighs Seneca Foods After Its 70% Rally
Cramer warned that the recent earnings improvement should not be extrapolated indefinitely. He said:
Food may sound dependable, but this is actually a business that comes with some real risk. Seneca processes much of its crop during a concentrated harvest season and sells the inventory over time. A poor harvest leaves fewer cases to absorb factory costs, which can hurt profitability well beyond the growing season.
Seneca Foods Corporation’s 10 largest customers accounted for 56% of fiscal 2026 sales, compared with 53% in fiscal 2025. Cramer also pointed to higher tin-plate steel costs and tariffs as another source of pressure, although Seneca has reduced steel consumption in certain cans. The earnings recovery also benefited from the company moving past expensive inventory associated with the poor 2024 harvest. That creates a tougher comparison as the business moves further beyond that period. Cramer therefore does not believe recent results alone justify a higher valuation.
Sure, Seneca has had a huge run, but it’s still pretty darn cheap because the earnings have been growing too. That said, I wouldn’t assume Seneca deserves a dramatically higher multiple just because the last few quarters’ been strong. You don’t buy a canned vegetable company for blowout numbers. You buy it for steady earnings growth.
At roughly $186 when Cramer discussed the stock, he said Seneca traded at just over 13 times current-year expected earnings and less than 13 times next year’s expected earnings. He also noted that the company can improve earnings through greater efficiency, stronger returns from the frozen business, and debt reduction without requiring spectacular revenue growth.
Hedge Fund Ownership Rises
As per Insider Monkey’s tracking of more than 1,000 hedge funds, 24 hedge funds held Seneca Foods at the end of Q2, up from 21 in Q1. Of those funds, Marshall Wace LLP was the top shareholder with 59,180 shares after initiating a position in SENEA in Q2. Additionally, the short interest was roughly 3% to 4% of the float. Cramer remains bullish on Seneca Foods Corporation’s business but does not see a reason to chase the shares after their large gain. He said he would be comfortable taking a small position and waiting for another decline before adding, concluding: “I like this Seneca Foods… I’m just hoping its recent pullback continues.”
READ NEXT: Jim Cramer Explains Why Enbridge (ENB) Offers a Secure Play During Market Volatility and Jim Cramer Says He Is Not Going to Put His Money on AstraZeneca (AZN).
Hedge Fund Resource Center