RJ Hamster
🦉 The Night Owl Newsletter for January 8th
Unsubscribe No AI Bots. Just Real Signals. (From Market Pulse Today)5 Under-the-Radar Consumer Staples Stocks With Pricing PowerWritten by Chris MarkochInvestors with an appetite for a good comeback story may want to look at consumer staples stocks. With the Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) almost flat in 2025, it would not take much effort to find beaten-down names in the sector.Many brands spent 2025 fighting a more value-conscious shopper, and pricing power was no longer a free pass.That’s exactly why 2026 could set up differently. When a sector underperforms, the best opportunities often show up in companies that can protect margins even as shoppers trade down.The challenge is avoiding mega-cap names like Procter & Gamble (NYSE: PG) and Coca-Cola (NYSE: KO), who have earnings potential, but also present a valuation problem.That leaves the door open for mid-cap stocks. Here are five names that are projected to deliver solid earnings growth, but don’t carry a premium multiple. Some of these names pay an attractive dividend to go along with the potential for stock price appreciation in 2026.Hormel Delivers Brand Strength + Private Label ExposureHormel Food Corp. (NYSE: HRL) stock fell nearly 25% in 2025. The company was acutely impacted by tariffs, a chicken recall, and a plant fire. All of these weighed on the company’s earnings, which were down 13% for the full year on a year-over-year (YOY) basis.However, the company is still managing to deliver strong results on the top line, and there are reasons to believe that margins will improve. Specifically, Hormel offers both branded pricing power (SPAM, Applegate, Skippy) and private label manufacturing, which benefits when consumers trade down.That dual exposure allows Hormel to defend margins even if volume shifts toward value products. Hormel is not just raising prices; it’s capturing wallet share across income tiers.Analysts forecast earnings growth of approximately 11.5% in the next 12 months.That would support the consensus price target of $28.20, which is over 28% above the HRL stock price on Jan. 6. Even if investors have to wait a couple of quarters for growth, they still own a dividend king that has increased its dividend, which currently yields 5.12%, for 60 consecutive years.Conagra: Portfolio Simplification = Pricing LeverageConagra Brands Inc. (NYSE: CAG) is another company that had a disastrous year in terms of stock price performance. CAG stock dropped by over 37% for the year, affected by the government shutdown and the focus on SNAP benefits.Analysts are forecasting about 5.5% earnings growth for CAG stock in 2026, but that may be too low.For its part, Conagra’s ongoing brand rationalization, fueled by artificial intelligence (AI), has sharpened its focus on higher-margin, higher-velocity categories (frozen meals, snacks, shelf-stable staples).By focusing on fewer, stronger brands, Conagra can strengthen its negotiating power with retailers and implement targeted price increases while offsetting softer volumes through mix improvements.Analysts forecast 19% upside for CAG stock, which has a favorable valuation to go along with a dividend of 8.4% as of this writing.Lamb Weston: Frozen Foods + Foodservice MixContinuing with the theme of beaten-down sector stocks, Lamb Weston (NYSE: LW) checks in with a loss of about 34% in 2025. With slight growth in revenue and earnings on a YOY basis, Lamb Weston didn’t perform poorly in a financial sense. However, that’s not enough to excite growth-oriented investors. And a 3.66% dividend yield wasn’t enough to make it a worthwhile hold.However, the company benefits from a unique dynamic: pricing power in frozen retail plus contract-based pricing in foodservice. That blend provides visibility and stability when consumers eat out less or trade down in groceries.As input costs fluctuate, the company can reprice contracts and adjust portion sizes, formats, and product tiers to protect margins.The forecast for LW is decidedly bullish. Analysts are projecting YOY earnings growth of over 17% and have a consensus price target of $54.18, which would be a gain of more than 30% from the LW stock closing price on Jan. 6.Post Holdings: Cereal and Convenience Pricing PowerGood performance is a relative term with consumer staple stocks in 2025. That said, Post Holdings Inc. (NYSE: POST) delivered the least bad performance of the stocks on this list, down about 9.8% in 2025.Part of that had to do with the company’s position as one of the leading cereal companies. Cereal is a classic “sticky” category, and Post has leaned into brand tiering (i.e., premium, mainstream, and value) to maintain pricing flexibility.Add in its higher-margin convenience and foodservice exposure, and POST stock can get a tailwind from consumers who still buy staples but change what kind they buy.Post Holdings is unique to this list in that the company doesn’t pay a dividend.Analysts project YOY earnings growth of nearly 15% for this name, and the consensus price target of $127.33 is 27% higher than the stock’s closing price on Jan. 6, one of the strongest upsides in the sector.J.M. Smucker: Brand Equity + Mix ManagementThe J.M. Smucker Co. (NYSE: SJM) is an iconic company in the packaged goods space. It’s best known for its namesake fruit spreads, but its portfolio has expanded into many other areas.In 2025, the company suffered due to its coffee exposure, particularly with the Folgers and Dunkin brands. However, the company has still managed to generate solid revenue even with earnings under pressure.But the story for 2026 is that Smucker doesn’t rely solely on headline price hikes. Instead, it protects margins through product mix (premium coffee vs. mainstream, branded pet food vs. private label) and incremental price actions. This allows Smucker to defend profitability even when volumes are flat.SJM stock has a consensus price target of $116.79, which is 21% upside from the company’s closing price on Jan. 6. Plus, the company is a dividend aristocrat with 27 consecutive years of dividend increases to go with a 4.59% yield. READ THIS STORY ONLINEBSEM is quickly becoming one of the most compelling MedTech growth stories. (Ad)BioStem Technologies (OTC: BSEM) continues to separate itself as one of the most compelling high-growth stories in MedTech. In its Q3 2025 results, the company reported $10.5 million in revenue, $0.8 million in GAAP net income, and its seventh consecutive quarter of positive adjusted EBITDA at $2.7 million—a rare feat in the small-cap regenerative medicine space. With $27.2 million in cash and a vertically integrated, GMP-compliant manufacturing platform, BSEM has demonstrated both financial resilience and operational discipline despite pricing pressures and a shifting reimbursement landscape. Zacks Small Cap Research’s $25.50 price target underscores the company’s potential for significant valuation expansion.START YOUR DUE DILIGENCE AND EXPLORE WHY ANALYSTS BELIEVE THIS COULD BE A BREAK OUTAlbertsons: Deep Value on the Surface, Opportunity Beneath?Written by Thomas HughesAlbertsons Companies (NYSE: ACI) presents a compelling value proposition in 2026, but the question is whether it is an opportunity for investors, and the signs suggest it is. While price action is bearish, results are outperforming expectations, and stock accumulation is underway. The company’s Q3 earnings report highlights continued outperformance versus expectations, reinforcing the bullish case despite bearish price action.It is only a matter of time before this stock price reconnects with reality, and when it does, the gains that follow could be explosive. Semi-explosive, at least.This isn’t exactly a high-growth story. We’re talking about a value-and-yield combination that suggests a high double-digit total return by the end of 2026 and the potential for a sustained rally as growth is reinvigorated. Albertsons Presents a Favorable Value-and-Yield CombinationOn a value basis, Albertsons trades at only 8x its current-year earnings outlook and 6x the 2030 consensus forecast, a discount relative to its peers every way you look at it. There are not many publicly traded direct competitors; Kroger (NYSE: KR) is number one, and Albertsons is number two. Kroger, the larger of the two, trades at 12x this year’s earnings and 10x the 2030 consensus, suggesting a minimum 50% upside is possible for ACI stock. Other comparisons, including those with regional player Ingles Markets (NASDAQ: IMKTA) and big-box stores such as Walmart (NASDAQ: WMT) and Costco (NASDAQ: COST), reveal even more favorable valuations. The dividend yield heightens the value. Albertsons pays a reliable 60 cents as of early 2026, yielding approximately 3.5%, compared to a competitor range that tops out under 3%. The highest-yielding competitor is regional grocer Village Super Markets; the critical comparison is to Kroger, which yields about 2.25% with a similar payout ratio. Albertsons’ dividend payout is under 30% of the fiscal year 2025 (FY2025) earnings consensus, according to MarketBeat, and the company has exceeded its targets every quarter so far. Value and yield are among the reasons why the institutions accumulated in 2025. The data reveals mixed activity in Q4, with selling outpacing buying ever so slightly, but bullish behavior for the year. Institutions bought on balance each quarter at a pace of approximately $3 for each $1 sold and are likely to continue accumulating in 2026. The forecast is for this company to sustain its modest growth pace and to widen margins. Tepid Guidance Sends ACI Shares to New LowsAlbertsons’ Q4 FY2025 guidance fell short of the consensus, sending shares to new lows. However, the guidance adjustment merely narrowed the range, forecasting a mid-point slightly below the consensus. The takeaway is that growth is expected, including earnings, sustaining the capital return outlook. Data in the report also reveals strengths, including in comparable sales, digital channels, and loyalty, which underpin growth across the retail universe. The likely outcome is that Q4 guidance is cautious, and that a catalyst for a rebound may emerge before mid-year. Catalysts in 2026 include the company’s strategic shift, increased loyalty engagement, and improved clarity now that the Kroger merger issues are behind it. The strategic shift focuses on digital, specifically its retail media network, which helps the grocery company leverage its growing loyalty base. The retail media network enables the company to sell ad space on its websites and apps, targeting specific shoppers and is a higher-margin business. Albertsons Stock Overextends After Q3 ReleaseAlbertsons’ stock price has been under pressure for many quarters and is overextended in early 2026. Both the MACD and stochastic indicators reflect significant divergences, suggesting that a lack of buyers, rather than a dearth of sellers, is driving the market. In this scenario, the stock price is set up to rebound sharply and could do so at any time. The risk is that ACI stock will continue to drift lower until later in the year when more news is available. In that scenario, it could move to the post-IPO lows near $14 before rebounding.  READ THIS STORY ONLINENo AI Bots. Just Real Signals. (Ad)You don’t need fancy software or AI tools to stay ahead — just the right signal before momentum hits. Market Pulse Today tracks a repeating pattern that flashes before select small caps start to move, sending fast, no-fluff alerts with clear breakdowns of why they matter now.GET THE NEXT MARKET PULSE REPORT BEFORE IT DROPS IN 24 HOURSWhy Qualcomm’s Latest Run at Resistance Has Bulls Paying AttentionWritten by Sam QuirkeShares of tech giant Qualcomm Inc. (NASDAQ: QCOM) jumped roughly 3.5% on Tuesday, Jan. 6, lifting the stock back toward the $183 area. That level is not random. It marked a firm ceiling in December and was also a sticky zone for bulls back in October and November, making it one of the most important price levels on the chart right now.What makes the current setup more compelling than previous ones is the structure taking shape underneath it. Since April, Qualcomm has been logging a clear series of higher lows, supporting a rising trendline that is now starting to push hard against a line of resistance around the $183 level.The result is a tightening wedge formation that clearly shows technical pressure is building. Given that this is not the first time Qualcomm shares have been knocking on the door up here, investors are right to ask why this time will be different. As we’ll see below, there are several reasons to think this might be the setup that finally sends the stock up towards $190 and keeps it there.Why Qualcomm’s Setup Looks Like a Wedge, Not a StallAt first glance, Qualcomm’s recent trading might look like another familiar pause near resistance, something long-time holders have seen before. But structurally, this setup is different from the false starts of the past, with the stock grinding higher in a fairly controlled fashion for nearly nine months.The stock’s sudden big pop towards $210 in late October was lacking that strong structural foundation, and so it was no surprise when the move higher was aggressively sold. In Qualcomm’s case, right now, though, the upward slope of the higher lows is a strong platform from which the stock can launch a sustainable breakthrough. If Qualcomm shares can push cleanly through the $183 area in the coming sessions, the next technical target would sit in the $190s. From there, October’s spike high near $205 comes back into focus. Qualcomm Catalysts Begin to Align Ahead of EarningsIt also helps that the technical picture is being reinforced by a steady flow of promising business developments. This week’s strength has come chiefly from updates out of the CES conference in Las Vegas, where Qualcomm shared updates on several initiatives that underscore its push for diversification. Among the highlights was an expansion of its partnership with Google, which is focused on bringing more artificial intelligence (AI) capabilities into the automotive space. Qualcomm also unveiled its new Snapdragon X2 Plus platform, promising meaningful improvements in performance, battery life, and on-device AI processing. Add in further expansion of its IoT portfolio and new partnerships across automotive and industrial segments, and the narrative around diversification continues to strengthen.The next major catalyst sits just ahead of us. Qualcomm’s earnings report in early February will be closely watched, with expectations building for another beat versus analyst consensus. If the stock doesn’t manage to do it on its own in the meantime, a strong report then could provide the spark needed to send shares into breakout mode. Qualcomm Must Prove This Setup Is Different This TimeDespite the improving setup, Qualcomm’s history does justify some caution. After all, it was only last week that we were highlighting how the stock was back at 2021 levels after a worrying run of red days. And despite having a good track record of beating analysts’ expectations at earnings time, the company also has a track record of frustrating investors with promising setups that ultimately go nowhere.That context makes the $183 level especially important. A failure here would reinforce the view that Qualcomm remains range-bound, regardless of how constructive the longer-term trend appears. For the bullish case to take control, the breakout needs to be decisive and sustained, not another brief pop that fades under pressure.For now, though, the chart is doing exactly what bulls would want to see. Higher lows continue to be printed against a line of resistance, while bullish updates are making headlines in the background. Wedges like this don’t last forever, and when there’s a breakout, it tends to be swift. READ THIS STORY ONLINEA month before the crash (Ad)Amazon’s Layoffs Were Just the BeginningAmazon just slashed 30,000 jobs – the largest layoff in its history – and almost no one’s talking about the real reason why. A former hedge fund manager says it’s part of a much bigger shift. One that could reshape how we all work, invest, and build wealth in the years ahead. He’s spent the last decade preparing for this moment… and just released something that could help everyday Americans get ahead, while there’s still time. FULL STORY HEREMore Stories3 of the Most Important Charts to Watch Right NowRocket Lab’s Rally Isn’t Random—Big Catalysts Are AheadUnder-the-Radar Setups Emerging From This Week’s Market Shift (Ad)Sable Offshore: The Court Ruling That Changes EverythingDo the Hottest ETFs of 2025 Still Have Upside in 2026?Biotech Is Heating Up—These 2 Red-Hot Stocks Stand OutSuper Micro’s Rubin Rally: Is the AI Server Comeback Real?The Night Owl is a financial newsletter that provides in-depth market analysis on stocks of interest to individual investors. Published by MarketBeat and Early Bird Publishing, The Night Owl is delivered around 9:00 PM Eastern Sunday through Thursday. If you give a hoot about the market, The Night Owl is the newsletter for you.  View as a Web PageIf you need assistance with your subscription, please don’t hesitate to email our U.S. based support team at contact@marketbeat.com.Unsubscribe © 2006-2026 MarketBeat Media, LLC. 345 N Reid Pl. #620, Sioux Falls, SD 57103-7078. 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