What Happened?
Shares of private label food company TreeHouse Foods (NYSE:THS) jumped 3.5% in the afternoon session after new economic data showed unexpected strength in the U.S. economy. The positive sentiment across Wall Street came after a Commerce Department report showed U.S. retail sales rose a better-than-expected 0.6% in June, signaling resilient consumer spending. This news helped ease investor fears about a potential recession, boosting stocks across the consumer staples sector. For a company like TreeHouse Foods, which manufactures private-label snacks and beverages for retailers, signs of a strong and active consumer are encouraging. Robust consumer spending can translate into sustained demand for grocery products, supporting the stock's upward movement in line with the overall market trend. The positive data was reinforced by a separate report showing that first-time applications for unemployment benefits fell to a three-month low, indicating a steady job market.
Also, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
The shares closed the day at $20.18, up 3.8% from previous close.
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What Is The Market Telling Us
TreeHouse Foods’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 3.1% on the news that the stock rebounded from a 52-week low set in the previous session. Shares hit a new 52-week low of $19.13 the previous day. The stock had been under pressure, falling nearly 39% over the previous six months and almost 50% over the previous year, reflecting broader challenges and investor concerns. Despite the recent downturn, there were some potentially positive signs for investors. The company's President, Steven Oakland, recently purchased $100,000 worth of shares, an insider buying signal that can suggest management's confidence in the business's prospects.
TreeHouse Foods is down 42.1% since the beginning of the year, and at $20.18 per share, it is trading 53.3% below its 52-week high of $43.22 from September 2024. Investors who bought $1,000 worth of TreeHouse Foods’s shares 5 years ago would now be looking at an investment worth $468.21.
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