Yahoo Finance Campbell Soup (CPB) Stock Sinks As Market Gains: What You Should Know
Campbell Soup (CPB) closed the most recent trading day at $51.30, moving -1.5% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.
Prior to today's trading, shares of the maker of canned soup, Pepperidge Farm cookies and V8 juice had lost 6.92% over the past month. This has lagged the Consumer Staples sector's loss of 2.51% and the S&P 500's gain of 5.64% in that time.
Wall Street will be looking for positivity from Campbell Soup as it approaches its next earnings report date. On that day, Campbell Soup is projected to report earnings of $0.73 per share, which would represent year-over-year growth of 5.8%. Meanwhile, our latest consensus estimate is calling for revenue of $2.44 billion, up 10.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.99 per share and revenue of $9.26 billion, which would represent changes of +4.91% and +8.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Campbell Soup should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Campbell Soup is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Campbell Soup is currently trading at a Forward P/E ratio of 17.42. Its industry sports an average Forward P/E of 18.08, so we one might conclude that Campbell Soup is trading at a discount comparatively.
We can also see that CPB currently has a PEG ratio of 5.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.84 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Campbell Soup Company (CPB) : Free Stock Analysis Report
