Hunt Valley, Maryland-based McCormick & Company, Incorporated (MKC) is a global leader in flavor, producing and distributing spices, seasonings, and condiments. With a market cap of $21.5 billion, it operates in over 150 countries through its Consumer and Flavor Solutions segments.
Categorized as a “large-cap stock,” McCormick’s valuation highlights its dominance in the flavor industry. Its innovative products and global reach underscore its position as a leader in the food industry.
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McCormick touched its 52-week high of $86.24 on Mar. 10 and is currently trading 6.8% below that peak. Meanwhile, MKC stock has gained nearly 3% over the past three months, outperforming the Nasdaq Composite’s ($NASX) 9.2% decline during the same time frame.
While MKC stock has dipped 4.1% over the past six months, lagging behind NASX’s marginal gains over the same time frame, it has surged 14.7% over the past 52 weeks, outpacing NASX’s 10.7% returns over the past year.
To confirm the recent upturn, MKC has observed a notable surge in stock prices since mid-January and traded mostly above its 200-day and 50-day moving averages since late February.
McCormick’s stock prices rose 2.1% after the release of its better-than-expected Q4 results on Jan. 23. Driven by a solid improvement in volumes, the company’s net sales for the quarter increased 2.6% year-over-year to $1.8 billion, exceeding the Street’s expectations by a notable margin. However, due to higher tax expenses, McCormick’s net income dropped 1.9% year-over-year to $215.2 million. Meanwhile, its adjusted EPS plunged 5.9% to $0.80, however, this figure surpassed the consensus estimates by 3.9%, which boosted investor confidence.
On a positive note, McCormick’s full-year revenues increased by $61.5 million to more than $6.7 billion and its net income for FY 2024 surged by an impressive 15.9% year-over-year to $788.5 million.
Meanwhile, McCormick has also outpaced its peer Hormel Foods Corporation’s (HRL) 6.1% drop over the past six months and 14.9% decline over the past 52 weeks.
Among the 12 analysts covering the MKC stock, the consensus rating is a “Moderate Buy.” Its mean price target of $85.15 represents a 6% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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