The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Hershey (NYSE: HSY) and the rest of the shelf-stable food stocks fared in Q1.

As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

The 21 shelf-stable food stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 0.5% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.5% since the latest earnings results.

Hershey (NYSE: HSY)

Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.

Hershey reported revenues of $2.81 billion, down 13.8% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

"I am pleased with the progress we are making on our key strategic initiatives for the year," said Michele Buck, The Hershey Company President and Chief Executive Officer.

Hershey delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $168.01.

Is now the time to buy Hershey? Access our full analysis of the earnings results here, it’s free.

Best Q1: Lamb Weston (NYSE: LW)

Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.

Lamb Weston reported revenues of $1.52 billion, up 4.3% year on year, outperforming analysts’ expectations by 2.4%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

Lamb Weston scored the highest full-year guidance raise among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $53.95.

Is now the time to buy Lamb Weston? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: B&G Foods (NYSE: BGS)

Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

B&G Foods reported revenues of $425.4 million, down 10.5% year on year, falling short of analysts’ expectations by 6.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

B&G Foods delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 30.2% since the results and currently trades at $4.41.

Read our full analysis of B&G Foods’s results here.

SunOpta (NASDAQ: STKL)

Committed to clean-label foods, SunOpta (NASDAQ: STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products.

SunOpta reported revenues of $201.6 million, up 9.3% year on year. This result beat analysts’ expectations by 3.7%. It was a very strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

SunOpta pulled off the biggest analyst estimates beat among its peers. The stock is up 27.1% since reporting and currently trades at $5.77.

Read our full, actionable report on SunOpta here, it’s free.

BellRing Brands (NYSE: BRBR)

Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

BellRing Brands reported revenues of $588 million, up 18.9% year on year. This print topped analysts’ expectations by 1.6%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ gross margin estimates.

BellRing Brands delivered the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is down 20.1% since reporting and currently trades at $62.71.

Read our full, actionable report on BellRing Brands here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.