Key Points
Del Monte Corporation (NYSE: DMC) recently got a new name and a new ticker, but thatʻs not all thatʻs new. The produce distributor has a new focus that should propel the stock higher when earnings come out on Aug. 4.
Over the past year, Del Monte has restructured and reorganized, buying the assets of the former Del Monte Foods, which went bankrupt in 2025. Del Monte Foods and Fresh Del Monte Produce, former ticker FDP, had been separate companies for the past 37 years, but this acquisition brought them back together. The reunion prompted the company to change its name back to Del Monte Corporation.
Is there 82% upside for Del Monte stock?
The acquisition of Del Monte Foods is targeted to be accretive to net sales by about $600 million and adjusted earnings before interest, taxes, depreciation, and amortization by roughly $23 million in 2026.
That will help fuel an anticipated 13% to 15% year-over-year increase in net sales in 2026 — thatʻs after a 4.9% decrease in net sales in the first quarter. It excludes the divestiture of the Mann packaging business, which Del Monte sold off in December 2025. But the outlook suggests that revenue will surge over the next three quarters.
Del Monte doesnʻt have a lot of analyst coverage, but an analyst who does cover it anticipates revenue of $1.3 billion in the second quarter, which would be a 26% increase over the first quarter. And earnings are anticipated to move significantly higher in 2027.
Del Monte also has an excellent dividend, paying out a high yield of 4.24%. It has raised its dividend for six straight years.
The analyst covering it rates it a buy with a price target of $52 per share, which would suggest 82% upside. If the second-quarter earnings report on Aug. 4 is as strong as expected, and earnings gains follow in 2027, this cheap stock with a high-yield dividend could have some legs.
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
