Markets have pushed higher in recent sessions, but are off their highs for the year. Markets may yet re-test their recent lows and trend lower, or look to eventually move back up to all-time highs.
No matter the short-term direction, buying great companies during a market pullback can often prove a solid winner over time. Focusing on industry leaders and getting a reasonable price for a great company ensures that short-term market opportunities are converted into long-term winners.
For instance, seasoning and spice industry leader McCormick & Company (MKC), has pulled back nearly 10% from its recent highs.
McCormick shares are also still up about 6% in 2025. Despite slightly weaker earnings, the stock looks ready to keep trending higher.
As the industry leader for spices, McCormick tends to trade at a premium to the overall market, but the stock has a long-term history of trending higher and paying an increasing dividend over time.
Action to take: Investors may like a position here, and could use market pullbacks to add to that position over time. McCormick shares currently pays a 2.2% dividend, which was recently increased in the past year.
For traders, the September $85 calls, last trading for about $2.55, could see mid-double-digit returns from a trend higher in shares over the summer.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.