New York-based International Flavors & Fragrances Inc. (IFF) is a leading creator of taste, scent, nutrition, and ingredient solutions for consumer products and industrial applications. Valued at a market cap of $16.5 billion, the company blends science and creativity to meet evolving consumer preferences, particularly in areas such as clean-label foods, plant-based nutrition, and wellness-driven personal care. 

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and IFF fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the specialty chemicals industry. With its broad portfolio, strong customer relationships, and worldwide reach, the company is positioned as a trusted partner to leading food, beverage, personal care, and household product companies, driving both consumer satisfaction and industry innovation.

Despite its notable strength, this chemical manufacturing company has dipped 39.6% from its 52-week high of $106.77, reached on Oct. 15, 2024. Moreover, shares of IFF have declined 15.9% over the past three months, considerably lagging behind the Materials Select Sector SPDR Fund’s (XLB) 2.9% rise during the same time frame.

In the longer term, IFF has fallen 37.8% over the past 52 weeks, notably underperforming XLB's 3.1% downtick over the same time period. Moreover, on a YTD basis, shares of IFF are down 23.7%, compared to XLB’s 7.8% return.

To confirm its bearish trend, IFF has been trading below its 200-day moving average since early November 2024, and has remained below its 50-day moving average since late October 2024, with slight fluctuations. 

On Aug. 5, IFF reported better-than-expected Q2 revenue of $2.8 billion and adjusted EPS of $1.15, yet its shares tumbled 6.3% in the following trading session. That said, compared to the year-ago quarter, its top-line declined 4.3%, while its adjusted EPS dropped marginally. Moreover, its adjusted EBITDA also fell 6.1% year-over-year to $552 million, primarily due to a decrease in earnings from the scent segment. These declines, despite the beat, might have made investors jittery. 

IFF has also lagged behind its rival, Givaudan SA (GVDNY), which declined 21.1% over the past 52 weeks and 1.9% on a YTD basis. 

Despite IFF’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 20 analysts covering it, and the mean price target of $84.64 suggests a 31.2% premium to its current price levels.