McCormick: Year-Long Pullback Finally Has Shares Looking Attractive
McCormick (MKC) is the largest spice and flavoring business sector with over 20% market share. The majority of sales comes from everyday consumers with restaurants and other businesses accounting for the remainder.
McCormick has always appeared to be expensive and rarely offers opportunities where shares are undeniably cheap. Rather the share price typically flirts with fair value and spends the rest of the time being quite expensive. That's for good reason though as the business is very strong and offers stability in most environments. Take the craziness of 2020, while some companies were facing the very real threat of $0 revenue quarters which put a serious strain on the business, McCormick was able to thrive due to the "everyday need" for their products.
My wife and I both love to cook and while it gets difficult at times with 3 kids 5 and under, we still try to take the time to cook most meals throughout the week.
McCormick's share price is off nearly 20% over the last year while the S&P 500, via SPDR S&P 500 Trust ETF (SPY), is down just over 4%. That underperformance hurts in the short term; however, it could offer an opportunity for patient long-term investors to add this great company to their portfolio.