What happened?

A number of stocks jumped in the afternoon session after investors shifted toward safer consumer staples after last week’s sell-off, favoring beer, food, household, and beauty names tied to everyday spending.

A sharp drop in oil on hopes of U.S.-Iran talks eased some of the inflation strain on the market, and these steadier names rose with that turn. The main indexes opened higher, with technology and AI-related stocks firming after crude dropped on growing hopes of a U.S.-Iran deal, Reuters reported.

Bloomberg said stocks and bonds rose together after Iran’s supreme leader gave the government approval to pursue talks that could ease the war’s strain on Middle East supply. Brent sank to around $106 a barrel. Early in the session the S&P 500 was up 0.5% and the Nasdaq 100 up 0.6%, with beaten-down technology megacaps leading. West Texas Intermediate was down 6.4% at $97.48, and the 10-year yield was down four basis points at 4.89%. The shift in the tape is cheaper oil and a steadier AI trade. The beer, food, and household names above are higher alongside that rebound.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Household products company Spectrum Brands (NYSE: SPB) jumped 3.7%. Is now the time to buy Spectrum Brands? Access our full analysis report here, it’s free.
• Shelf-stable food company B&G Foods (NYSE: BGS) jumped 3.2%. Is now the time to buy B&G Foods? Access our full analysis report here, it’s free.
• Perishable food company Beyond Meat (NASDAQ: BYND) jumped 5.4%. Is now the time to buy Beyond Meat? Access our full analysis report here, it’s free.
• Shelf-stable food company Simply Good Foods (NASDAQ: SMPL) jumped 9%. Is now the time to buy Simply Good Foods? Access our full analysis report here, it’s free.
• Beverages, alcohol, and tobacco company Celsius (NASDAQ: CELH) jumped 3%. Is now the time to buy Celsius? Access our full analysis report here, it’s free.

Zooming in on Simply Good Foods (SMPL)

Simply Good Foods’s shares are very volatile and have had 21 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 5 days ago when the stock gained 8.2% on the news that the company reported fiscal fourth-quarter net sales and adjusted diluted earnings per share above Wall Street expectations, and forecast a fiscal 2027 sales decline alongside wider gross margins. According to a company press release, adjusted diluted earnings per share was 44 cents, above the consensus estimate of 42 cents. Net sales were $333.3 million, above the projected $327.9 million, compared with $369.0 million a year earlier. Net income was $30.5 million. For fiscal 2027, the company expects net sales to decline 13% to 17% and adjusted EBITDA to decline 9% to 14%, and it expects GAAP gross margins to expand 250 to 300 basis points.

On the earnings call, management said it raised prices by close to a double digit and expects that to move gross margins closer to a historic level of about 40%. The fiscal 2027 sales decline reflects weaker consumption, the volume impact of that price increase, and distribution losses. Management expects the first quarter to be the weakest, with sales, gross margin, and adjusted EBITDA stronger in the second half as the price impact fades and higher marketing spending, led by Quest, improves consumption. The company is reinvesting part of the margin recovery into its brands.

Simply Good Foods is down 37.3% since the beginning of the year, and at $12.26 per share, it is trading 42.7% below its 52-week high of $21.40 from January 2026. Investors who bought $1,000 worth of Simply Good Foods’s shares 5 years ago would now be looking at only $306.12.

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