We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Campbell Soup (CPB) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Campbell Soup (CPB - Free Report) closed at $52.04, marking a -0.67% move from the previous day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the maker of canned soup, Pepperidge Farm cookies and V8 juice had lost 7.8% over the past month, lagging the Consumer Staples sector's loss of 1.61% and the S&P 500's gain of 2.3% in that time.
Investors will be hoping for strength from Campbell Soup as it approaches its next earnings release. 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 $2.43 billion, up 10.1% 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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Campbell Soup has a Forward P/E ratio of 17.52 right now. For comparison, its industry has an average Forward P/E of 18.34, which means Campbell Soup is trading at a discount to the group.
Also, we should mention that CPB has a PEG ratio of 5.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Miscellaneous was holding an average PEG ratio of 2.81 at yesterday's closing price.
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 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.
To follow CPB in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Campbell Soup (CPB) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Campbell Soup (CPB - Free Report) closed at $52.04, marking a -0.67% move from the previous day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the maker of canned soup, Pepperidge Farm cookies and V8 juice had lost 7.8% over the past month, lagging the Consumer Staples sector's loss of 1.61% and the S&P 500's gain of 2.3% in that time.
Investors will be hoping for strength from Campbell Soup as it approaches its next earnings release. 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 $2.43 billion, up 10.1% 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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Campbell Soup has a Forward P/E ratio of 17.52 right now. For comparison, its industry has an average Forward P/E of 18.34, which means Campbell Soup is trading at a discount to the group.
Also, we should mention that CPB has a PEG ratio of 5.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Miscellaneous was holding an average PEG ratio of 2.81 at yesterday's closing price.
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 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.
To follow CPB in the coming trading sessions, be sure to utilize Zacks.com.