Why McCormick & Company Stock Fell 10.5% in February
Shares of spice and flavor business McCormick & Company (NYSE: MKC) declined 10.5% in February according to data provided by S&P Global Market Intelligence. That was a touch more than the S&P 500 Index, which was off by around 8% for the month. The big driver of the decline was fear surrounding the spread of COVID-19. That said, McCormick is generally considered a defensive stock because it makes food products. So why was its price decline deeper than the broader market's drop, especially when the company's financial results have been generally strong?
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McCormick reported earnings in late January and the news was pretty good. Sales were up 1% (a strong showing in the food space these days), it generated record cash flow, and the first dividend of 2020 will be 9% higher than the last dividend payment. Moreover, management painted an even brighter picture of the future, providing guidance for a 2% to 4% sales increase in 2020.
Source Fool.com
