McCormick & Company's (NYSE: MKC) share price has been under pressure for many quarters as tepid growth, macroeconomic headwinds, and deteriorating analyst sentiment have sapped investor confidence. However, despite the negative trends, this is a high-quality, blue-chip consumer staple now trading at a deep value level.
The latest hit to confidence was the planned merger with Unilever’s (NYSE: UL) food business, a highly synergistic acquisition that will enable value gains and growth. It sparked a sharp decline in stock price, putting MKC shares below $50 intraday and near the 16X earnings multiple. At this level, MKC shares trade below the low end of their historical range, with the potential to more than double over time.
