Through 2023, the six stocks in the food sector have been split into clear winners and losers, with no middle ground. What caught our eye yesterday was that the four members that rallied came from the loser’s enclosure and vice versa, i.e. some sector reversion was at play. The Food and beverage Sector has endured an awful four years, correcting ~40% as it had to contend with events such as severe weather patterns to Chinese tariffs, surging inflation plus, of course, COVID. As a sector, it looks very oversold, and a decent bounce wouldn’t surprise, but this area must be evaluated on a stock-by-stock basis.
