Cash-strapped consumers are eating more meals at home and that's slathering J.M. Smucker's (SJM) bottom line in sweet, sticky profits.

The packaged-food maker said Friday that fiscal second-quarter earnings boomed more than 170%, blowing past Wall Street's estimates by 18 cents a share, according to Thomson Reuters. Even more impressive, revenue leaped by 52%.

Smucker may be best known for its eponymous jams and jellies -- other brands include Jif, Hungry Jack, Crisco and Pillsbury -- but it's the Folgers coffee business the company acquired from Procter & Gamble (PG) last year that's jolting growth.
Next Year Looks Sweet

Shares popped on the better-than-expected results, but there's still a lot of value left in the stock. Standard & Poor's analyst Tom Graves reiterated his strong buy on Smucker Friday, saying he's pleased by the strength of the U.S. coffee business and thinks the stock should trade at a 10% premium to competitors. Even better, Graves expects the company to raise its dividend in 2010.

That makes the relative valuation look tasty, indeed. On a forward earnings basis, Smucker shares trade at a 25% discount to the S&P 500 ($INX) and a 10% to their own five-year average, according to Thomson Reuters. The stock offers even deeper discounts when measured by trailing earnings.

Meanwhile, analysts' average price target stands at $62.33. Throw in the 2.6% dividend yield, and you get an implied upside of nearly 14% in the next 12 months or so.