Fundamental to Sustain Life...Food

Opportunities in the food business

I'm surprised I'm writing about a food company. Must be because I'm getting older or I'm hungry. Since the major indexes bottomed in October 2022, the majority of the stock market has risen up until recently due to technology stocks. But lately the band (MAG 7) has been breaking up...or maybe it's just a hiatus.

What's been picking up the slack are boring stocks...like SpartanNash Co (SPTN). Down 10.64% YTD, yet up 6.48% in the last 3 months, SpartanNash has shown signs of grabbing some of the cash that's flowed out of the MAG 7 or MAG 3, depending on the time period you're looking at.

"SpartanNash Co is a food solutions company that delivers the ingredients. Its principal business activities include, distributing grocery products to a diverse group of independent and chain retailers, its corporate-owned retail stores, and U.S. military commissaries and exchanges; as well as operating a fresh produce distribution network and the Our Family private label brand. The company operates in two segments: Retail and Wholesale. Majority of the revenue is earned from its Wholesale segment which uses a multi-channel sales approach to distribute national brand and private brand products to independent retailers, national accounts, food service distributors, e-commerce." -*YCharts*

Fundamental Breakdown

FYI, I look at the Year over Year numbers.

* Revenue: 2022 $9.643B vs 2023 $9.729B

* EPS Diluted: 2022 $0.95 vs 2023 $1.50 per share

* Return on Equity: 2022 4.46% vs 2023 6.77%

* Dividend Yield: 4.31%

Technical Analysis

In the last two days it's had a sizable breakout. I think it'll likely retreat to the 50 day Simple Moving Average and find support. From the 50 day SMA I see a move to resistance at the 200 day SMA. SPTN could be a "trade" or it could be a "runner" - the resistance at the 200 will determine that. MACD is positive, yet the RSI and Slow Stochastics are showing signs of weakening.

Time to Pay Attention

Good chance we'll see a temporary run up in the tech stocks that have sold off this week. But I believe we'll continue to see the rotation out of Risk On to Risk Off. Remember...for Wall Street...It's all about the Benjamins!

Disclaimer: This is not advise or a recommendation. Due your own due diligence before investing.

Live Loud!

Trent