10 Cheap Food Stocks to Buy According to Hedge Funds

7. The J.M. Smucker Company (NYSE:SJM)

Forward P/E: 11.38

Number of Hedge Fund Holders: 37

The J.M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products under a portfolio of brands. Its operations are divided into four segments: US Retail Coffee, US Retail Frozen Handheld and Spreads, and US Retail Pet Foods and Sweet Baked Snacks.

Over the past five quarters, The J.M. Smucker Company (NYSE:SJM) has maintained strong trends and attained strong industry standing in the frozen foods and snacks segment. It has driven consistent top-line growth through advertising, trade, and innovation investments. In addition, its solid financial position is further supported by free cash flow conversion surpassing 100% due to efficient working capital management, particularly in inventory. It currently offers a quarterly dividend of $1.08 per share and has a dividend yield of 3.89% as of February 24.

The J. M. Smucker Company (NYSE:SJM) also has a history of transforming modest investments into significant revenue streams. For instance, its 1998 purchase of Uncrustables for $1 million evolved into a mega brand generating nearly $1 billion in annual revenue. The company ranks 7th on our list of the 10 cheap food stocks to buy according to hedge funds.