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Near 52-Week Lows, These 3 Mid-Cap Stocks Are Worth a Look
CPBCampbell Soup(CPB) MarketBeat·2025-05-31 13:25

Group 1: Market Overview - Investors holding mid-cap stocks have faced challenges due to inflation, higher interest rates, and tariffs impacting revenue and margins [1] - Many mid-cap stocks are trading near 52-week lows but offer dividends that compensate investors for holding [2] Group 2: Reynolds Consumer Products - Reynolds Consumer Products is experiencing pressure from inflation affecting raw material costs, particularly aluminum and resin, along with increased shipping and labor costs [3] - The company's revenue and earnings are under pressure as consumers shift to house brands, leading to a decline in volume and margins expected to continue in 2025 [4] - Analysts maintain a consensus price target of $28.33 for Reynolds, indicating an upside of over 27%, and the stock is trading at a discount with a P/E ratio of 13.21 [5] Group 3: Campbell's Company - Campbell's Company faces similar challenges as Reynolds, including rising aluminum prices and a shift in consumer preferences towards healthier options [6] - The Snacks division reported a 6% decline in net sales and a 29% drop in operating earnings year-over-year [7] - Despite these challenges, Campbell's has maintained a disciplined capital structure and increased its dividend by 5% at the start of the 2025 fiscal year [7] Group 4: J&J Snack Foods - J&J Snack Foods is experiencing increased input costs due to inflation but is largely shielded from tariffs [10] - The stock is trading at a discount to historical averages despite a P/E ratio of 26, with a consensus price target of $142.50 indicating a potential 25% increase [12] - The company's Theater business has been weak, with a 10% decline in North American box office sales impacting margins, but summer blockbusters may drive growth [11][12]