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Bear of the Day: The Campbell's Company (CPB)

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Key Takeaways

  • CPB shares have continued to face adversity in 2026, lagging in a big way.
  • Weak quarterly results haven't helped sentiment, though the company remains confident in a turnaround.

The Campbell's Company (CPB - Free Report) , together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products.

The stock is currently a Zacks Rank #5 (Strong Sell), with EPS revisions remaining bearish across the board.

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Image Source: Zacks Investment Research

CPB Shares Keep Struggling

CPB shares have continued to see weak action in 2026, down nearly 25% and widely underperforming relative to the S&P 500. Quarterly results have largely been disappointing as of late, with shares facing pressure following its latest earnings release.

Zacks Investment Research
Image Source: Zacks Investment Research

CPB fell short of the latest Zacks Consensus EPS estimate by more than 10%, with sales also coming in 1.6% lower than expected. Concerning growth, sales fell by nearly 5% YoY, whereas earnings were down 31%. Earnings growth has been weak for the company over the last several years, as shown below.

Zacks Investment Research
Image Source: Zacks Investment Research

CPB also lowered its current-year outlook following the above-mentioned period, helping explain the downward revisions we’ve seen. The company does remain confident in a potential turnaround, though, looking to mitigate recent cost headwinds while also leaning into new product innovation. 

The weak price action has boosted its dividend yield in a big way, though, with shares currently yielding a sizable 7.5% annually. That said, the weak EPS outlook remains a big headwind, with positive revisions needed in a big way to turn around sentiment.

Bottom Line

Negative earnings estimate revisions stemming from a guidance cut paint a challenging picture for the company’s shares in the near term.

The Campbell’s Company (CPB - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.

For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.

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