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Featured Tickers:

GIS ,

HRL ,

HSY , K

MDLZ ,

PEP ,

RMCF ,

SJM ,

TR ,

UTZ

There’s something about Halloween that makes you feel like a kid again. For many, October is synonymous with fun costumes, spooky decorations and of course Halloween treats.

According to the National Retail Federation’s (NFR) seasonal trends report, more than 160 million Americans were predicted to spend nearly $2.4 billion on candy for Halloween in 2020 for themselves or to hand out to trick-or-treaters. They were also estimated to spend $2.6 billion on costumes and $2.6 billion on decorations. Candy sales are expected to return to 2018 and 2019 levels this year of nearly $2.6 billion, up by more than 8%. Americans spend more than $20 billion on candy every year.

The First Cut filter for this issue is very basic: We screened for exchange-listed stocks with a tie to sweet and savory Halloween treats. Some stocks, such as Hershey Co. (HSY) and Tootsie Roll Industries Inc. (TR), are direct plays on the traditional candy aspect of trick-or-treating, while other stocks, such as Utz Brands Inc. (UTZ) and J.M. Smucker Co. (SJM) satisfy our desire for salty or healthier snacks.

Some of the world’s largest candy manufacturers are private companies. Mars Inc. is one of the leading manufacturers of chocolate, chewing gum, mints and fruity confections. Some of its popular brands include M&M’s, Snickers, Twix, Wrigley’s, Lifesavers, Skittles and Starburst. Another prominent private candy company is Italy’s Ferrero Group. In 2018, it acquired Nestle USA’s confectionary business with more than 20 iconic American brands, including Butterfinger, Baby Ruth, Wonka, LaffyTaffy and exclusive rights to the Crunch brand in certain categories in the U.S.

Ten stocks made the First Cut Stocks list, and they are ranked from low to high by their forward price-earnings ratio, which divides the current stock price by the consensus expected earnings for the company’s current fiscal year and provides a sense for the expectations priced into these stocks. Tootsie Roll Industries, which produces popular candy brands like Charms Blow Pop, Dots and Junior Mints, and Rocky Mountain Chocolate Factory Inc. (RMCF), which manufacturers premium chocolate candies, do not have any analyst coverage and were placed at the bottom of the list.

A short-term picture of earnings stability and growth is provided through the display of annual earnings per share for each of the last two years, along with the expected earnings for the current fiscal year. The historical earnings growth figure over the last five years gives a longer-term perspective of bottom-line growth, while the sales growth rate does the same with strength in the top line of the income statement.

The market capitalization (share price times number of outstanding shares) indicates the size of the firm, with smaller firms having higher growth potential, but often higher risk. The price change figures for the last 52 and 13 weeks highlight long- and short-term stock performance.

We understand that Halloween may look different again this year depending on how state and local officials develop safety guidance, but one thing is for sure: Halloween is happening, and chocolate and candy are an essential part of celebrating the season.

Sweet and Savory Halloween Treat Stocks
(Ranked by Forward Price-Earnings Ratio)

Company	Ticker	Share Price (9/10) ($)	Forward P/E Ratio (x)	EPS Last Year ($)	EPS 1 Yr Ago ($)	EPS Est Y0 ($)	EPS Grth 5-Yr (%)	Sales Grth 5-Yr (%)	Market Cap ($ Mil)	52-Wk Price Chg (%)	13-Wk Price Chg (%)	Industry
J.M. Smucker Co.	SJM	121.06	14.4	7.79	6.84	8.43	6.2	0.5	13,087.5	7.1	(11.1)	Food Processing
Kellogg Company	K	62.74	15.3	3.72	2.80	4.09	16.6	0.4	21,475.4	(4.9)	(3.7)	Food Processing
General Mills, Inc.	GIS	58.43	15.6	3.78	3.56	3.74	6.4	1.8	35,436.9	(0.1)	(6.5)	Food Processing
Mondelez International Inc.	MDLZ	60.23	20.7	2.47	2.70	2.91	(11.1)	(2.2)	84,721.7	5.5	(5.6)	Food Processing
Hormel Foods Corp.	HRL	42.31	24.8	1.66	1.80	1.70	5.5	0.7	22,895.9	(14.9)	(13.3)	Food Processing
PepsiCo, Inc.	PEP	155.46	24.9	5.12	5.19	6.23	6.9	2.2	215,236.8	15.4	5.3	Non-Alcoholic Bevs
Hershey Co.	HSY	175.06	25.4	6.11	5.46	6.90	21.3	2.0	36,139.3	20.6	0.2	Food Processing
Utz Brands Inc.	UTZ	19.33	32.3	(1.58)	0.14	0.60	--	--	2,678.1	7.7	(18.4)	Food Processing
Rocky Mountain Chocolate Factory	RMCF	8.48	--	(0.15)	0.17	--	(17.1)	(10.3)	51.1	175.3	39.9	Food Processing
Tootsie Roll Industries, Inc.	TR	30.36	--	0.86	0.94	--	(0.9)	(2.7)	2,105.7	2.2	(12.5)	Food Processing
Source: AAII Stock Investor Pro Refinitiv I/B/E/S and iShares. Data as of 9/10/2021.