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SNAX Stock: Stryve Foods Expanding Its Reach in Healthy Snacking

Keep reading to learn more about the up-and-coming healthy snack option and what to expect from SNAX stock. 
The post SNAX Stock: Stryve Foods Expanding Its Reach in Healthy Snacking appeared first on Investment U.

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If you are looking to grab a piece of the growing demand for healthy snacks, look no further than Stryve Foods (Nasdaq: SNAX). That said, SNAX stock is down over 80% after peaking at $14 a share as the company continues growing its catalog.

Stryve Foods is an early-stage company focusing on meeting the growing need for healthy food options. So far, the company has two products in its portfolio, including:

  • Air Dried Meats
  • Nutritional Foods & Supplements.

With this in mind, the global health and wellness food market is worth over $733 billion. Not only that, but it’s expecting to become a trillion-dollar industry within the next four years.

The company is firing on all cylinders with a new distribution deal, expanding portfolio, and in-demand product. Keep reading to learn more about the up-and-coming healthy snack option and what to expect from SNAX stock.

Stryve Foods Competitive Advantage

At first glance, Stryve may seem like any other healthy food company. With Americans spending more than ever on healthy food products, brands are racing to grab a piece of the growing market.

But Stryve has a major advantage in the product it sells. The air-dried meat goes through a process called Biltong, a south-African style of drying beef. The method is 100% natural without added sugar, MSG, or nitrates.

Not to be confused with beef jerky, Biltong is slabbed with vinegar and air-dried in a humidity-controlled room. As a result, the product contains no processing and more protein per serving.

Furthermore, the air-dried meat fits the mold for popular dieting trends like Paleo and Keto.

More importantly, SNAX stock is the largest producer of Biltong in the U.S. According to the U.S Department of Agriculture, you cannot import Biltong from South Africa. So, this gives Stryve a significant advantage here in the U.S with growing demand for natural, high-protein snacks.

As of right now, the company offers several different flavors of sliced, grass-fed, and sticks of Biltong. On top of this, you can also buy a ‘slicer and slab’ bundle, including a blade and dried meat slab.

Why Is SNAX Stock Down?

With all this market potential, how come SNAX stock is still down over 80% from its peak? A large part of why SNAX is falling is because of the broad market selling off. In particular, growth stocks as a group are getting hit the hardest as many startups saw their valuations soar since the pandemic.

With this in mind, Stryve is still early stage and unprofitable as it continues expanding its market. As investors look to reduce risk, profitability is the main concern.

On top of this, a series of earnings misses continues putting pressure on shares of SNAX. Despite significant top-line growth in the past two quarters, supply chain issues and labor costs continue weighing on the bottom line.

The company posted a net loss of $8.7 million in the third quarter, up $4.3 million from last year. Also, record beef prices are cutting further into profits.

At the same time, gross profits increase 104% in the quarter as the company improves its manufacturing ability. In early-stage companies like Stryve, losses are expected as the company invests in growing the company.

High Growth Expectations

After buying out the No. 2 Biltong brand in the U.S, Kalahari Snacks, SNAX stock now owns 85% of the market. Not only that, but with the largest USDA-approved air-dried meat facility, Stryve is way ahead of the competition.

The company estimates consumers shifting to healthy eating will push their addressable market to over $500 billion this year. So far, the company’s growth strategy is paying off.

  1. Choose a food category in need of disruption for healthy options.
  2. Enter through acquisition.
  3. Build various distribution channels across retail and online.
  4. Use marketing techniques to drive repeat customers.
  5. Vertically integrate to improve margins.

Its latest distribution deal gives SNAX stock a huge boost in growing its brand. As part of the deal, the company will double its product presence in Costco while more than doubling its SKUs at Walmart.

On top of this, you can find their products just about anywhere with its strong-selling channels.

  • Online. Amazon, Stryve.com.
  • Grocery. Sprouts, Publix, Kroger, Wegmans, etc.
  • Mass. Walmart, Target.
  • Club. Costco.
  • Convenience. 7/11, Speedway, Wawa, Circle K.
  • Dollar and Drug. Dollar General, CVS.
  • Misc. Lifetime Fitness, REI Co-op, CIBO.

As you can see, Stryve is getting its products in the right stores. More importantly, as consumers look for healthy snacks, the company expands its product line, and retailers are buying into the demand.

SNAX Stock Forecast: Do We Go Lower?

The big question with investors right now is, will SNAX stock go lower? So far, SNAX is struggling to find any support with growth stocks selling off aggressively.

Having said that, Stryve is making the right moves to position itself for the future. The company researched to find a growing need, and healthy snacking is one of the quickest growing trends right now.

With dominant market control, a superior supply chain, and a hit product, look for Stryve to continue its momentum. As for SNAX stock, this year could be a challenge with the market undergoing major changes with the Fed pulling back support to fight surging inflation.

Although the company is still young, it has big market potential being the market leader by far. At $2.50 share, SNAX is falling into penny stock territory. And in this case, I think Stryve is trading below what the company is worth.

Another company focusing on people looking for healthy alternatives is Celsius Holdings (Nasdaq: CELH). That said, CELH stock is still up over 1,000% in the past two years despite losing over half its value since November. The company makes healthy energy drinks. After the brand caught fire, CELH stock raced from under $5 a share to over $100.

Can Stryve do the same with air-dried meats? So far, it’s proving to be a solid bet. But, look for Stryve products to continue popping up on shelves for clues to how the brand is doing.

The post SNAX Stock: Stryve Foods Expanding Its Reach in Healthy Snacking appeared first on Investment U.

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Economics

5 Top Consumer Stocks To Watch Right Now

Are these consumer stocks a buy amid the earnings season?
The post 5 Top Consumer Stocks To Watch Right Now appeared first on Stock Market News, Quotes,…

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5 Trending Consumer Stocks To Watch In The Stock Market Now         

As we tread through the earnings season, consumer stocks could be worth watching in the stock market this week. This would be the case since a number of big consumer names such as Costco (NASDAQ: COST) and Macy’s (NYSE: M) will be posting their financials for the quarter. As such, investors will be keeping an eye on these reports for clues on the strength of consumer spending amid this period of high inflation.

However, despite the soaring prices across the economy, it seems that consumers are surprisingly showing resilience. According to the Commerce Department, retail sales in April outpaced inflation for a fourth straight month. This could suggest that consumers as a whole were not only sustaining their spending, but spending more even after adjusting for inflation. Ultimately, it could be a reassuring sign that consumers are still supporting the economy and helping to diminish the narrative of an incoming recession. With that being said, here are five consumer stocks to check out in the stock market today.

Consumer Stocks To Buy [Or Sell] Right Now

Nordstrom

retail stocks (JWN stock)

Starting off our list of consumer stocks today is Nordstrom. For the most part, it is a fashion retailer of full-line luxury apparel, footwear, accessories, and cosmetics among others. The company operates through multiple retail channels, boutiques, and online as well. As it stands, Nordstrom operates around 100 stores in 32 states in the U.S. and three Canadian provinces.

Yesterday, the company reported its financials for the first quarter of 2022. Starting with revenue, Nordstrom pulled in net sales worth $3.47 million for the quarter. This marks an increase of 18.7% from the same quarter last year. Its Nordstrom banner saw net sales rise by 23.5% year-over-year, exceeding pre-pandemic levels. Next to that, its Nordstrom Rack banner saw a 10.3% increase in net sales from last year. Besides, net earnings were $20 million, with earnings per share of $0.13 for the quarter. Considering Nordstrom’s solid quarter, should you invest in JWN stock?

[Read More] Best Stocks To Invest In Right Now? 5 Value Stocks To Watch This Week

The Wendy’s Company

best consumer stocks (WEN stock)

Next up, we have The Wendy’s Company. For the most part, it is the holding company for the major fast-food chain, Wendy’s. Being one of the world’s largest hamburger fast-food chains, the company boasts over 6,500 restaurants in the U.S. and 29 other countries. The chain is known for its square hamburgers, sea salt fries, and the Frosty, a form of soft-serve ice cream mixed with starches. WEN stock is rising by over 8% on today’s opening bell.

According to an SEC filing, Wendy’s largest shareholder, Trian Partners, is looking into making a potential deal with the company. Trian said that it is considering a deal to “enhance shareholder value.” Also, the firm adds that this could lead to an acquisition or business combination. In response, Wendy’s stated that it is constantly reviewing strategic priorities and opportunities. It added that the company’s board will carefully review any proposal from Trian. Given this piece of news, will you be watching WEN stock?

[Read More] 4 Semiconductor Stocks To Watch In The Stock Market Today

Foot Locker

FL stock

Another stock investors could be watching is the shoes and apparel company, Foot Locker. In brief, the company uses its omnichannel capabilities to bridge the digital world and physical stores. As such, it provides buy online and pickup-in-store services, order-in-store, as well as the growing trend of e-commerce. Some of its most notable brands include Eastbay, Footaction, Foot Locker, Champs Sports, and Sidestep. Last week, the company reported its results for the first quarter of the year.

For starters, total sales came in at $2.175 billion, a slight uptick compared to sales of $2.153 billion in the year prior. Next to that, Foot Locker reported a net income of $133 million. Accordingly, adjusted earnings per share came in at $1.60, beating Wall Street’s expectations of $1.54. CEO Richard Johnson added, “Our progress in broadening and enriching our assortment continues to meet our customers’ demand for choice. These efforts helped drive our strong results in the first quarter, which will allow us to more fully participate in the robust growth of our category going forward.”  As such, is FL stock one to add to your watchlist? 

Tyson Foods 

TSN stock

Tyson Foods is a company that built its name on providing families with wholesome and great-tasting protein products. Its segments include Beef, Pork, Chicken, and Prepared Foods. With some of the fastest-growing portfolio of protein-centric brands, it should not be surprising that TSN stock often comes to mind when investors are looking for the best consumer stocks to buy. 

Earlier this month, Tyson Foods provided its fiscal second-quarter financial update. The company’s total sales for the quarter were $13.1 billion, representing an increase of 15.9% compared to the prior year’s quarter. Meanwhile, its GAAP earnings per share climbed to $2.28, up 75% year-over-year. According to Tyson, these financial figures are a reflection of the increasing consumer demand for its brands and products. To top it off, the company was also able to reduce its total debt by approximately $1 billion. Thus, does TSN stock have a spot on your watchlist?

[Read More] Stock Market Today: Dow Jones, S&P 500 Rise, Wendy’s Stock Gains On Potential Deal

DoorDash

food delivery stocks (DASH Stock)

DoorDash is a consumer company that operates an online food ordering and delivery platform. In fact, it is one of the largest delivery companies in the U.S. and enjoys a huge market share. The company connects hundreds of thousands of merchants to over 25 million consumers in the U.S., Canada, Australia, and Japan through its local logistics platform. Accordingly, its platform allows local businesses to thrive in today’s “convenience economy,” as the company puts it.

On May 5, the company reported its first-quarter financials for 2022. Diving in, it posted a revenue of $1.5 billion, growing by 35% year-over-year. This was driven by total orders that grew by 23% year-over-year to $404 million. Along with that, it reported a GAAP gross profit of $662 million, an increase of 34% year-over-year. The company said that it added more consumers than any quarter since Q1 2021, due in part to the growth of its DashPass members. The growth in Monthly Active Users and average order frequency has helped it gain share in the U.S. Food Delivery category this quarter as well. Given DoorDash’s performance for the quarter, should you watch DASH stock?

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The post 5 Top Consumer Stocks To Watch Right Now appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Economics

Philly Fed: State Coincident Indexes Increased in 50 States in April

From the Philly Fed: The Federal Reserve Bank of Philadelphia has released the coincident indexes for the 50 states for April 2022. Over the past three months, the indexes increased in all 50 states, for a three-month diffusion index of 100. Additiona…

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From the Philly Fed:
The Federal Reserve Bank of Philadelphia has released the coincident indexes for the 50 states for April 2022. Over the past three months, the indexes increased in all 50 states, for a three-month diffusion index of 100. Additionally, in the past month, the indexes increased in all 50 states, for a one-month diffusion index of 100. For comparison purposes, the Philadelphia Fed has also developed a similar coincident index for the entire United States. The Philadelphia Fed’s U.S. index increased 1.1 percent over the past three months and 0.3 percent in April.
emphasis added
Note: These are coincident indexes constructed from state employment data. An explanation from the Philly Fed:
The coincident indexes combine four state-level indicators to summarize current economic conditions in a single statistic. The four state-level variables in each coincident index are nonfarm payroll employment, average hours worked in manufacturing by production workers, the unemployment rate, and wage and salary disbursements deflated by the consumer price index (U.S. city average). The trend for each state’s index is set to the trend of its gross domestic product (GDP), so long-term growth in the state’s index matches long-term growth in its GDP.
Click on map for larger image.

Here is a map of the three-month change in the Philly Fed state coincident indicators. This map was all red during the worst of the Pandemic and also at the worst of the Great Recession.

The map is all positive on a three-month basis.

Source: Philly Fed.

Philly Fed Number of States with Increasing ActivityAnd here is a graph is of the number of states with one month increasing activity according to the Philly Fed. 

This graph includes states with minor increases (the Philly Fed lists as unchanged).

In April all 50 states had increasing activity including minor increases.

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Economics

Finding Shelter in an Inverse ETF

As the old saying goes, “What goes up must come down.” Indeed, up until the recent selling wave caused by Russia’s war against Ukraine and the continued…

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As the old saying goes, “What goes up must come down.”

Indeed, up until the recent selling wave caused by Russia’s war against Ukraine and the continued effects of supply chain disruptions amid the COVID-19 pandemic, tech stocks, including semiconductors, were the darlings of the investment world. That is, it seemed as if the sky-high valuations of some tech stocks were sustainable in an atmosphere of seemingly perpetual growth.

That, of course, was not the case, and the too-good-to-be-true valuations were quickly brought down to earth by the forces of inflation and tight monetary policy. As a result, the tech-heavy Nasdaq entered a free-fall that has not yet found a bottom.

At the same time, that does not mean that we should abandon the sector as a lost cause. One such way to play the sector during its downhill slide is the exchange-traded fund (ETF) Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA: SOXS).

As its title suggests, this is an inverse ETF, meaning that it is built to go up in value when its parent index goes down. Specifically, SOXS provides three times leveraged inverse exposure to a modified market-cap-weighted index of semiconductor companies that trade in American markets by using swap agreements, futures contracts and short positions.

While the index’s holdings are weighted by market capitalization, the fund’s managers cap the weights of the top five securities in the portfolio at 8% each. The weight of the remaining securities is capped at 4% each.

As of May 24, SOXS has been up 0.37% over the past month and up 24.73% for the past three months. It is currently up 60.47% year to date.

Chart courtesy of www.stockcharts.com

The fund has amassed $258.15 million in assets under management and has an expense ratio of 1.01%.

In short, while SOXS does provide an investor with a way to invest in an inverse ETF, this kind of ETF may not be appropriate for all portfolios. Thus, interested investors always should conduct their due diligence and decide whether the fund is suitable for their investing goals.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

The post Finding Shelter in an Inverse ETF appeared first on Stock Investor.

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