TreeHouse Foods has seen a significant decline in sales and earnings estimates are being revised down.

From Nasdaq: 2024-11-30 04:30:00

TreeHouse Foods (THS) is a major producer of private-label packaged foods in North America, offering cost-effective alternatives to national brands. However, the company has seen a significant decline in sales from $6 billion in 2016 to $3.3 billion today, leading to a poor stock performance over the last decade.

Analysts have further revised down TreeHouse Foods’ earnings estimates, giving it a Zacks Rank #5 (Strong Sell) rating. Sales are expected to drop by 4.3% this year, with current quarter earnings estimates lowered by 27.6% and FY24 projections by 12.2%.

Despite trading below market average at 16.7x one year forward earnings multiple, TreeHouse Foods still faces poor growth prospects. The competitive food industry and low margins make it a risky investment, prompting investors to seek opportunities elsewhere until the company shows signs of improvement.

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Read more at Nasdaq: Bear of the Day: TreeHouse Foods (THS)