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Campbell Soup (CPB) Stock Sinks As Market Gains: What You Should Know

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Campbell Soup (CPB - Free Report) closed the most recent trading day at $50.67, moving -1.92% from the previous trading session. This move lagged the S&P 500's daily gain of 1.1%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 6.59%.

Heading into today, shares of the maker of canned soup, Pepperidge Farm cookies and V8 juice had lost 9.43% over the past month, lagging the Consumer Staples sector's loss of 1.44% and the S&P 500's gain of 4.58% 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, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Investors might also notice recent changes to analyst estimates for Campbell Soup. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.

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. 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 17.28. For comparison, its industry has an average Forward P/E of 18.73, which means Campbell Soup is trading at a discount to the group.

Also, we should mention that CPB has a PEG ratio of 5.1. 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. CPB's industry had an average PEG ratio of 2.82 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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