Campbell Soup Company (CPB), headquartered in Camden, New Jersey, manufactures and markets branded convenience food and beverage products. Valued at $8.6 billion by market cap, the company's core divisions include soups and sauces, biscuits and confectionery, and foodservice. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores.
Companies worth $2 billion or more are generally described as “mid-cap stocks,” and CPB perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the packaged foods industry. CPB has a strong brand legacy and diversified portfolio, with iconic brands like Campbell's soups, Swanson broths, and Pepperidge Farm snacks driving consumer loyalty. The acquisition of Rao's adds premium offerings, contributing to a resilient revenue stream.
Despite its notable strength, CPB slipped 34.5% from its 52-week high of $43.85, achieved on Mar. 10. Over the past three months, CPB stock declined 13.5%, underperforming the Dow Jones Industrials Average’s ($DOWI) 5.7% gains during the same time frame.
In the longer term, shares of CPB dipped 13.8% on a six-month basis and fell 33% over the past 52 weeks, significantly underperforming DOWI’s six-month gains of 12.8% and 10.4% returns over the last year.
To confirm the bearish trend, CPB has been trading below its 50-day and 200-day moving averages over the past year, experiencing some fluctuations.
CPB faced challenges, with sales declining due to shifting consumer habits and cost pressures. Despite stable market share for core brands, tariffs, inflation, and higher input costs impacted margins.
On Dec. 9, CPB shares closed down more than 5% after reporting its Q1 results. Its adjusted EPS of $0.77 exceeded Wall Street expectations of $0.73. The company’s revenue was $2.68 billion, exceeding Wall Street forecasts of $2.66 billion. CPB expects full-year adjusted EPS in the range of $2.40 to $2.55.
CPB’s rival, General Mills, Inc. (GIS), has lagged behind the stock, with 14.7% losses on a six-month basis, but outpaced the stock with a 29.3% downtick over the past 52 weeks.
Wall Street analysts are cautious on CPB’s prospects. The stock has a consensus “Hold” rating from the 19 analysts covering it, and the mean price target of $31.55 suggests a potential upside of 9.8% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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