Since May 2025, Kellanova has been in a holding pattern, posting a small return of 1.5% while floating around $83.31. The stock also fell short of the S&P 500’s 16.4% gain during that period.
Is now the time to buy Kellanova, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free for active Edge members.
Why Is Kellanova Not Exciting?
We don't have much confidence in Kellanova. Here are three reasons there are better opportunities than K and a stock we'd rather own.
1. Sales Volumes Stall, Demand Waning
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
Kellanova’s quarterly sales volumes have, on average, stayed about the same over the last two years. This stability is normal because the quantity demanded for consumer staples products typically doesn’t see much volatility. 
2. Projected Revenue Growth Is Slim
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Kellanova’s revenue to rise by 2.4%. Although this projection suggests its newer products will spur better top-line performance, it is still below the sector average.
3. EPS Trending Down
Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Sadly for Kellanova, its EPS declined by 3.5% annually over the last three years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.
Final Judgment
Kellanova’s business quality ultimately falls short of our standards. With its shares trailing the market in recent months, the stock trades at 22.5× forward P/E (or $83.31 per share). This valuation tells us a lot of optimism is priced in - we think there are better opportunities elsewhere. We’d suggest looking at one of our top software and edge computing picks.
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