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Yahoo
13 hours ago
- Business
- Yahoo
Ecolab (ECL) Rallied in 2025 as Sustainability and Efficiency Remained Top Priorities
Ecolab Inc. (NYSE:ECL) is one of the Best Dividend Stocks of 2025. A technician wearing a protective suit in a water treatment plant. The company's 2024 Growth & Impact Report, released in May, highlighted the company's strong performance and continued progress toward its 2030 Positive Impact goals. This year's report also includes a new measure: the cumulative value created through Ecolab's services and solutions. The company achieved record results in both financial performance and sustainability, made possible through close collaboration with customers and the efforts of a dedicated, high-performing team. The stock has surged by over 15% in 2025 so far. Ecolab Inc. (NYSE:ECL)'s Chairman and CEO, Christophe Beck, emphasized that the company's success lies in expanding its impact alongside business growth and team development. He noted that as businesses worldwide aim for improved profitability and resource efficiency, Ecolab continues to demonstrate how strong performance and meaningful impact can go hand in hand. Beck expressed appreciation for the team's efforts in 2024 and their ongoing contribution toward achieving the 2030 vision. Ecolab Inc. (NYSE:ECL) has also remained committed to its shareholder value, growing its dividends for 33 years in a row. The company currently pays a quarterly dividend of $0.65 per share and has a dividend yield of 0.99%, as of June 26. While we acknowledge the potential of ECL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Ecolab (ECL) Rallied in 2025 as Sustainability and Efficiency Remained Top Priorities
Ecolab Inc. (NYSE:ECL) is one of the Best Dividend Stocks of 2025. A technician wearing a protective suit in a water treatment plant. The company's 2024 Growth & Impact Report, released in May, highlighted the company's strong performance and continued progress toward its 2030 Positive Impact goals. This year's report also includes a new measure: the cumulative value created through Ecolab's services and solutions. The company achieved record results in both financial performance and sustainability, made possible through close collaboration with customers and the efforts of a dedicated, high-performing team. The stock has surged by over 15% in 2025 so far. Ecolab Inc. (NYSE:ECL)'s Chairman and CEO, Christophe Beck, emphasized that the company's success lies in expanding its impact alongside business growth and team development. He noted that as businesses worldwide aim for improved profitability and resource efficiency, Ecolab continues to demonstrate how strong performance and meaningful impact can go hand in hand. Beck expressed appreciation for the team's efforts in 2024 and their ongoing contribution toward achieving the 2030 vision. Ecolab Inc. (NYSE:ECL) has also remained committed to its shareholder value, growing its dividends for 33 years in a row. The company currently pays a quarterly dividend of $0.65 per share and has a dividend yield of 0.99%, as of June 26. While we acknowledge the potential of ECL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None.
Yahoo
a day ago
- Business
- Yahoo
AT&T (NYSE:T) Declares Dividends on Preferred and Common Stocks for August 2025
AT&T recently declared quarterly dividends for both its preferred and common stocks, underscoring its commitment to shareholder returns. Over the past month, AT&T's stock moved up by 2%, closely aligning with the broader market's 2% increase. While the dividend announcements may have reinforced investor confidence in the company's stability, the performance was generally in step with market trends. The ongoing antitrust lawsuit mentioning AT&T has not drastically deterred its market performance. Additionally, the company's collaborations in enhancing public safety with technology partnerships have bolstered its innovative image, likely supporting its consistent stock movement. AT&T has 3 weaknesses we think you should know about. Uncover the next big thing with financially sound penny stocks that balance risk and reward. AT&T's recent dividend announcements alongside technological collaborations may strengthen investor confidence, contributing to a robust narrative around 5G and fiber investments. Over the past five years, AT&T's total shareholder return, including both share price appreciation and dividends, was 70.36%, reflecting a steady commitment to enhancing shareholder value. In contrast, its recent yearly performance outpaced the US Telecom industry, which saw a 25.5% increase, showcasing that AT&T is keeping pace with, if not exceeding, broader industry trends. The ongoing antitrust lawsuit's minimal impact on share price suggests an underlying resilience that aligns with AT&T's growth strategies. However, the regulatory and competitive pressures remain significant hurdles. These factors could potentially influence revenue and earnings forecasts, especially as AT&T navigates its transition to fiber infrastructure, which aims to bolster net margins through cost reductions. The maintenance of a US$40 billion shareholder return plan, combined with a US$10 billion stock repurchase program, further underscores the firm's focus on earnings-per-share growth. With AT&T's current share price of US$27.5, the market attention shifts to the consensus analyst price target of US$29.30. This price target suggests a moderate upside potential, while the most bullish analyst forecasts envision a 12.6% increase in share value to US$31.46. As AT&T continues to execute its strategic initiatives, the alignment of its long-term investments with analyst expectations remains crucial in navigating market dynamics and investor sentiment. Gain insights into AT&T's future direction by reviewing our growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:T. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
4 days ago
- Business
- Yahoo
Can JANA Repeat Activist Success at TreeHouse Foods?
Well Known activist investor JANA Partner continues to accumulate shares of Treehouse Foods Inc. JANA Partners is a New York-based activist investment firm founded in 2001 by Barry Rosenstein. Specializing in event-driven and activist investing, JANA Partners seeks to create substantial value for its investors and stakeholders by acquiring significant stakes in underperforming public companies and actively engaging with management to drive strategic, operational, or governance changes. The firm is known for its hands-on approach, leveraging shareholder engagement to unlock value, and has also incorporated socially responsible and ESG-focused investing into its strategies in recent years. JANA Partners manages approximately $1.6 billion and has a history of high-profile activist campaigns in companies such as Whole Foods Market, ConAgra Brands, and PetSmart JANA Partners has established a strong reputation for successful activist investments, particularly by targeting underperforming companies and driving strategic changes to unlock shareholder value. Notably, JANA took an 8.8% stake in Whole Foods Market in 2017, advocated for board and operational improvements, and ultimately profited significantly when Amazon acquired Whole Foods later that year. Similarly, JANA acquired a 10% stake in PetSmart in 2014, pushed for a sale, and benefited when the company was acquired for $8.7 billion by BC Partners. In 2018, JANA's activism at Pinnacle Foods led to operational changes and a subsequent $8.1 billion acquisition by Conagra Brands, netting JANA a substantial profit. The firm has also influenced positive changes at ConAgra Foods and Frontier Communications, the latter seeing its stock rise nearly 50% following JANA's involvement. Beyond these, JANA has led activist campaigns at major companies like Apple, Tiffany & Co., Walgreens Boots Alliance, Safeway, Marathon Petroleum, and McGraw Hill, often advocating for board changes or strategic reviews. Through its activist strategies, JANA's funds have consistently generated strong returns, cementing its status as one of the most effective activist investors in the US market. Treehouse Foods Inc. originated from the specialty foods segment of Dean Foods Company, which had roots dating back to 1862 with the Green Bay Food Company, a pickle producer. In 2005, Dean Foods spun off this specialty division to form Treehouse Foods as an independent, publicly traded company focused on private-label packaged foods. Treehouse supplies these products primarily as private-label goods for retail grocery, club stores, foodservice, and co-pack customers across North America. From its inception, Treehouse pursued growth through acquisitions, including Del Monte's soup and baby food businesses in 2006, Bay Valley Foods in 2010, Flagstone Foods in 2013, and most notably, ConAgra Foods' Private Brands business in 2016, which doubled its size and solidified its position as a leading private-label food manufacturer in North America. Following this expansion, Treehouse restructured to improve efficiency, selling its ready-to-eat cereal business in 2019 and appointing Steve Oakland as CEO in 2020 to emphasize operational improvements and organic growth. Today, Treehouse operates numerous production facilities across the U.S. and Canada, supplying major retailers and foodservice companies with a broad portfolio of products. Treehouse Foods Inc. produces a wide range of private-label food and beverage products across shelf-stable, refrigerated, and frozen formats. Their portfolio includes crackers (such as saltine, cheese, graham, and sandwich creme cookies), pretzels (including seasoned twists, sticks, waffles, and peanut butter-filled varieties), candy (notably peanut butter-filled cups), and snack bars. They also manufacture non-dairy creamers with various flavor options, coffee (ground, whole bean, and foodservice formats), tea, powdered beverages and drink mixes, broths and stocks, refrigerated dough, hot cereals, cheese sauces and puddings, and pickles. Additionally, Treehouse offers in-store bakery items, griddle products like frozen pancakes and waffles, dressings, dips, gravies, jams, and other grocery items such as dry dinners, macaroni and cheese, side dishes, sweeteners, powdered soups, mayonnaise, flavored syrups, baking mixes, and liquid beverage enhancers. Their product lines include organic and gluten-free options to meet diverse consumer needs. Treehouse Foods' economic moat is rooted in its leadership position as one of North America's largest private-label food manufacturers, which gives it strong, long-term relationships with major retailers and consistent demand for its products. The company's extensive product portfolio and ability to quickly adapt to changing consumer trends provide a competitive advantage in the dynamic packaged foods sector. Treehouse also benefits from a large, efficient supply chain and manufacturing network, allowing for cost savings and rapid market response that smaller competitors struggle to match. Its emphasis on quality, safety, and innovation further strengthens its reputation and customer loyalty, especially as private-label products become more popular with value-conscious shoppers. By offering customized solutions for retailers, TreeHouse differentiates itself from branded competitors and becomes a preferred partner for private-label development. While competition from major branded food companies is intense, TreeHouse's scale, operational efficiency, and deep integration with retail partners create significant barriers to entry for new private-label manufacturers and help sustain its competitive edge. Shares Bought 6,565,300 Average Price 40.57/Share Shares Sold -743,963 Average Price 46.67/Share Current Price 20.72 Total Estimated Gain -41.68 % JANA Partners began acquiring shares in TreeHouse Foods during the fourth quarter of 2020, marking the start of its investment in the company. By early 2021, JANA had amassed a significant stakearound 7.4%and entered into an agreement with TreeHouse Foods to appoint two independent directors to the board. Over time, JANA increased its holdings, and currently more than 11.5% of TreeHouse Foods' outstanding shares. 1. Belief in Undervalued Stock and Turnaround Potential JANA Partners' recent purchase in May 2025 of over $250 million in Treehouse Foods shares, even after a roughly 40% stock decline in the past year, signals a strong conviction that the company is undervalued and poised for a turnaround.. JANA has a history of targeting companies it believes are trading below their intrinsic value, seeking to unlock shareholder value through strategic changes. 2. Activist Influence and Strategic Involvement JANA Partners is not a passive investor; it has secured board representation at Treehouse Foods and has actively advocated for strategic changes, including a potential sale of the company or divestiture of lower-growth business segments to focus on higher-growth categories like snacks and beverages. Their ongoing investment is likely tied to their confidence in influencing or overseeing these value-creating initiatives. 3. Insider Confidence and Alignment The recent stock purchases were not limited to JANA Partners; TreeHouse Foods' CEO Steven Oakland also bought shares at the same time, which is often interpreted as a strong vote of confidence in the company's future from management.. Such insider buying can be a positive signal to the market that leadership believes the business is on the right track. 4. Cost-Cutting and Restructuring Efforts Treehouse Foods has implemented significant restructuring and cost-cutting measures, including eliminating approximately 150 positions and centralizing functions, which are expected to improve profitability going forward. JANA's increased stake comes as these changes begin to show early signs of success, with recent quarterly earnings exceeding expectations despite ongoing revenue declines. 5. Private Label Growth Opportunity As the largest pure-play private-label manufacturer in the US, Treehouse Foods stands to benefit from consumer shifts toward more affordable private-label products, especially during economic downturns. JANA likely sees long-term value in Treehouse's market position, even as the company navigates short-term industry headwinds like rising commodity costs and reduced consumer spending. 6. Potential for Strategic Transactions JANA has a track record of driving successful sales or restructurings at other food companies, such as Pinnacle Foods and Whole Foods. Their continued buying may reflect expectations of a similar outcome at Treehouse Foods, whether through a sale, divestiture, or another transaction that could unlock significant value for shareholders. 7. Analyst and Valuation Perspectives Some valuation models, such as GuruFocus' GF Value, estimate that Treehouse Foods' fair value could be double its current trading price, suggesting substantial upside if the company's turnaround succeeds. While Wall Street analysts are cautious, with a consensus Hold rating, the activist involvement and restructuring efforts may shift sentiment if results improve. JANA Partners continues to buy Treehouse Foods Inc. because it sees the company as undervalued, believes in its turnaround strategy, is actively involved in shaping its future, and anticipates that cost-cutting and strategic refocusing will drive improved performance and potentially significant shareholder returns Comparative Analysis The top five private label food manufacturers are Treehouse Foods, ConAgra Foods, The Kraft Heinz Company, Sysco Corporation, and The J.M. Smucker Company. ConAgra Foods is another major player, producing private label frozen meals, snacks, and baking mixes for supermarket chains and foodservice operators. The Kraft Heinz Company, known globally for its branded products, also manufactures a wide variety of private label condiments, sauces, snacks, and frozen foods for retailers worldwide. Lamb Weston which was spun out of ConAgra is the largest supplier of French fries to private label and restaurants in the US. Sysco Corporation, primarily a food distributor, is also a significant manufacturer of private label frozen foods, snacks, and sauces for both foodservice and retail clients. Rounding out the list, The J.M. Smucker Company produces private label jams, jellies, peanut butter, and other food products for grocery chains, complementing its well-known branded offerings. These companies stand out for their scale, diverse product portfolios, and strong partnerships with major supermarket and foodservice clients, making them leaders in the private label food manufacturing sector. Treehouse Foods Price to Sales and Price to Operating Cash Flow ratios compare well with this cohort. Ticker Company Current Price Market Cap ($M) Debt-to -Equity PS Ratio PE Ratio without NRI PB Ratio Price-to-Opera ting-Cash-Flow EV-to- EBITDA CAG Conagra Brands Inc $21.57 10,296.71 0.93 0.88 9.18 1.17 5.65 16.89 KHC The Kraft Heinz Co $26.08 30,866.78 0.44 1.25 8.72 0.63 7.65 18.56 LW Lamb Weston Holdings Inc $54.80 7,733.14 2.61 1.23 16.76 4.73 9.86 11.12 SJM JM Smucker Co $95.72 10,186.20 1.26 1.17 9.46 1.67 8.42 -114.36 SYY Sysco Corp $74.29 36,012.20 7.60 0.45 17 18.74 12.52 11.68 THS Treehouse Foods Inc $20.72 1,046.36 1.04 0.32 10.31 0.69 4.12 11.65 JANA has significant experience with Activist Campaigns and Food Companies JANA also invested in ConAgra in 2015, where it pushed for board changes and strategic restructuring, As an activist investor, JANA Partners played a significant role in pushing for strategic changes at Conagra Brands, which ultimately led to the sale of Ralcorp and the spin-off of Lamb Weston in 2016. JANA's activism at the time was focused on improving margins, separating underperforming businesses, and unlocking shareholder value, and their involvement is credited with driving meaningful change, including the Lamb Weston spin-off JANA Partners has a history of investing in several food companies beyond Lamb Weston. The firm played a significant activist role in the sale of Pinnacle Foods in 2018 and was instrumental in the acquisition of Whole Foods by Amazon in 2021, having held a substantial stake in Whole Foods. Overall, JANA Partners is known for targeting underperforming or undervalued food sector companies, acquiring sizable stakes, and then driving management or strategic changes to unlock shareholder value. Insiders have been buying the company stock in the recent months. This is a good sign. and so has the company. Both the above action are strong signs of value. Conclusion Investing alongside activist guru investors like JANA Partners can be attractive because these firms have significant resources, access to company management, and a disciplined, value-driven approach that often targets undervalued companies with potential for change. Their involvement has sometimes led to lucrative outcomes, such as the sale of Whole Foods to Amazon and the acquisition of Pinnacle Foods by Conagra. However, while following guru investors can offer valuable insights and highlight promising opportunities, Guru Investing also carries risks. Individual investors may not share the same risk tolerance, objectives or investment timeline as these firms, and by the time their trades are publicly disclosed, much of the potential upside may already be reflected in the stock price. As a result, while tracking guru investors can be a useful way to generate ideas and understand market trends, it should always be complemented by independent research and a careful assessment of personal investment goals and risk tolerance. It should be understood that in this case a value crystallizing event (like a sale) may not occur for several years. There is also the not insubstantial risk of a take under. A "take under" by an activist investor occurs when the investor acquires a significant minority stake in a publicly traded company and then pushes for the company to be sold or privatized at a price below its current market value. Minority shareholders may be squeezed out. Unlike a traditional takeover, which usually involves acquiring control or buying out the company at a premium, a take under involves advocating for a sale at a discount. Activists may argue that such a sale is necessary to unlock value, address underperformance, or resolve strategic challenges, even if some shareholders believe the company is worth more. To achieve this, activist investors often use public campaigns, negotiations, or proxy fights to influence management and other shareholders toward their preferred outcome. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Kraft Heinz Sees Cash Flow Surge Despite Stagnant Dividend
The Kraft Heinz Company (NASDAQ:KHC) is one of the Best Dividend Leaders to Buy Now. The company was once a classic income stock known for regularly raising its dividend. When Kraft merged with Heinz in 2015, they formed one of the largest consumer goods companies, initially maintaining a strong dividend strategy. A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces. Dividends rose during the first three years after the merger, but then The Kraft Heinz Company (NASDAQ:KHC) drastically cut its dividend. Several high-profile brand acquisitions didn't deliver the expected profits, leading the company to tighten its dividend policy to preserve cash. Since early 2019, the quarterly dividend has remained fixed at $0.40 per share. That said, its cash flows are increasing, which provides a positive outlook for its dividends. The company's operating cash flow has jumped from $2.46 billion in 2022 to $4.1 billion in 2024. Similarly, free cash flow grew from $1.5 billion in 2022 to $3.02 billion last year. Due to this cash flow, the company remained committed to its shareholder value, returning $477 million through dividends in the first quarter of 2025. The Kraft Heinz Company (NASDAQ:KHC) pays a quarterly dividend of $0.40 per share and has a dividend yield of 6.17%, as of June 23. While we acknowledge the potential of KHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Sign in to access your portfolio
