Campbell Soup (CPB) Stock Sinks As Market Gains: What You Should Know
Campbell Soup (CPB) closed at $51.67 in the latest trading session, marking a -0.5% move from the prior day. This change lagged the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.
Prior to today's trading, shares of the maker of canned soup, Pepperidge Farm cookies and V8 juice had lost 7.6% over the past month. This has lagged the Consumer Staples sector's loss of 0.34% and the S&P 500's gain of 6.27% in that time.
Wall Street will be looking for positivity from Campbell Soup as it approaches its next earnings report date. In that report, analysts expect Campbell Soup to post earnings of $0.86 per share. This would mark year-over-year growth of 24.64%. Our most recent consensus estimate is calling for quarterly revenue of $2.44 billion, up 10.24% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.99 per share and revenue of $9.26 billion. These totals would mark changes of +4.91% and +8.15%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Campbell Soup is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Campbell Soup's current valuation metrics, including its Forward P/E ratio of 17.37. This valuation marks a discount compared to its industry's average Forward P/E of 18.81.
Meanwhile, CPB's PEG ratio is currently 5.12. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.85 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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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