Company Overview - McCormick & Company, Incorporated (MKC) is based in Hunt Valley, Maryland, and specializes in manufacturing, selling, and distributing spices, seasoning mixes, condiments, and other flavorful products, with a market cap of $18.5 billion [1] Stock Performance - MKC shares have underperformed the broader market over the past year, declining 8.6% compared to a 14.4% increase in the S&P 500 Index. However, in 2026, MKC stock has risen 3.6%, outperforming the S&P 500's 1.4% increase year-to-date [2] - Compared to the First Trust Nasdaq Food & Beverage ETF (FTXG), which gained about 6% over the past year and 12.8% year-to-date, MKC's performance has been weaker [3] Financial Performance - MKC's performance has been affected by unexpected commodity inflation and tariff costs, which have offset efficiency gains. Despite growth in both consumer and flavor solutions segments, gross margins have been squeezed [6] - The company reported Q4 results with an adjusted EPS of $0.86, missing Wall Street expectations of $0.87, and revenue of $1.85 billion, falling short of forecasts of $1.86 billion. MKC expects full-year adjusted EPS in the range of $3.05 to $3.13 [7] - For fiscal 2026, analysts expect MKC's EPS to grow 3.3% to $3.10 on a diluted basis. The company's earnings surprise history is mixed, beating consensus estimates in two of the last four quarters while missing forecasts in two others [8] Management Insights - CEO Brendan Foley noted resilient consumer demand and innovation-driven sales growth but acknowledged that ongoing inflationary pressures and ERP costs will constrain profitability. The company anticipates continued volume growth through new products and distribution, although profitability will be impacted by costs and investments [6]

Company Overview - McCormick & Company, Incorporated (MKC) is based in Hunt Valley, Maryland, and specializes in marketing and distributing spices, seasoning mixes, condiments, and other flavorful products to the food industry, with a market cap of $17.7 billion [1] Stock Performance - MKC shares have underperformed the broader market over the past 52 weeks, declining 12.4%, while the S&P 500 Index gained 13.1% [2] - Year-to-date, MKC's stock is down 12.8%, compared to a 15.1% return for the S&P 500 [2] - MKC has also lagged behind the First Trust Nasdaq Food & Beverage ETF, which saw an 11.6% decline over the past 52 weeks and a 6.8% drop year-to-date [3] Earnings Report - On November 11, MKC shares surged 2.2% following a strong Q3 earnings release, with total net sales increasing 2.7% year-over-year to $1.7 billion, slightly exceeding consensus estimates [4] - The adjusted EPS for the quarter was $0.85, reflecting a 2.4% improvement from the previous year and surpassing analyst expectations by 4.9% [4] - Despite pressure on gross margins due to rising costs in a dynamic global trade environment, MKC managed to drive operating profit growth through effective cost-saving initiatives [4] Future Earnings Expectations - For the current fiscal year ending in November, analysts project MKC's EPS to grow 2.4% year-over-year to $3.02 [5] - MKC's earnings surprise history is mixed, with the company exceeding consensus estimates in three of the last four quarters [5] Analyst Ratings - Among 14 analysts covering MKC, the consensus rating is a "Moderate Buy," consisting of seven "Strong Buy," one "Moderate Buy," and six "Hold" ratings [5] - The analyst sentiment has become more bullish compared to three months ago, with six analysts recommending a "Strong Buy" and one suggesting a "Strong Sell" [6] - AllianceBernstein analyst Alexia Burland Howard maintained a "Buy" rating on MKC with a price target of $91, indicating a potential upside of 38% from current levels [6]

Core Viewpoint - McCormick & Company is positioned to benefit from increasing durable goods orders in the U.S. economy, presenting an undervalued investment opportunity as economic data improves [2][4][10]. Group 1: Company Overview - McCormick manufactures seasoning mixes and similar products, which are categorized as non-perishable goods, making it a suitable candidate for investment amid rising durable goods orders [2][4]. - The stock has shown a performance increase of up to 5.5% over the past month, indicating positive market momentum [5]. Group 2: Market Conditions - The S&P 500 index is currently over-concentrated in technology stocks, suggesting a potential rotation towards value names in the consumer staples sector, where McCormick operates [2][3]. - Institutional investors, such as T. Rowe Price, have increased their holdings in McCormick by 28.6%, reflecting confidence in the stock's future performance [7][8]. Group 3: Financial Outlook - McCormick's management has reiterated a satisfactory financial outlook for the second quarter of 2025, despite challenges from uncertain trade negotiations [9][10]. - Analysts have set a consensus price target of $84.13 for McCormick, indicating an upside potential of approximately 11.07% from the current price of $75.74 [7][11].