According to Yahoo Finance, the biggest gainer on the stock market today was B&G Foods, Inc. (BGS). At the closing bell, BGS was up over 12%. BGS’s annual report shows that the company has increased its net income by +100% from 2015-2016. But the reason B&G Foods, Inc. had such a great day was probably due to the quarterly revenue jumping 28.3% every year. This translated to a .1% drop in adjusted net income to $36.8 million. Adjusted net income per diluted shares dropped $0.55, a 1.8% drop. Analysts were expecting an even lower drop to $0.47 per diluted share. Since the loss was much less than analyst expected, this translated to a higher valuation for investors who rushed in for the opportunity to buy something that seems to be undervalued.
Valuation is something that I am going to continue to work on. Currently, the main source I am using for valuation is Valuation by McKinsey and Company.
LET’S BUILD OUR FINANCIAL LITERACY ONE STEP AT A TIME!!!!