The Campbell's Company is an undervalued income stock with strong market share and a well-covered 4.1% dividend yield, making it a solid value pick. The Sovos Brands acquisition, especially the high-growth Rao's brand, positions CPB for sustained expansion and enhances its product portfolio. Cost-saving initiatives and management's focus on improving margins are expected to drive profitability.
These high-quality companies are solid—and their stocks look cheap.
Campbell's focus on innovation and portfolio refinement provides a pathway to success, but recent stock performance poses challenges for investors.
Investors need to pay close attention to The Campbell's (CPB) stock based on the movements in the options market lately.
The Campbell's Co. NASDAQ: CPB recently changed its name from Campbell Soup Co. in November 2024. The new name better describes the consumer staples sector leader's diverse portfolio of brands.
Consumer staples stocks offer a lot for income investors. They aren't flashy, they don't grow robustly, but their blue-chip businesses are entrenched and produce cash flow that stands the test of time.
The Campbell's Company CPB shares are trading lower on Thursday.
I recommend a hold rating for Campbell's due to weak organic growth and inability to meet long-term targets. CPB's recent earnings report showed mixed results, with revenue and gross profit missing expectations, and organic growth declining in key segments. The departure of the CEO further diminishes confidence in CPB's ability to achieve its long-term guidance and manage competitive pressures.
The entire food industry now faces a difficult environment with several pitfalls ahead, many of them potentially emanating from the Trump administration.
Campbell's Company outgoing President and CEO Mark Clouse joins 'Mad Money' host Jim Cramer to talk what's next for the company, his decision to leave the position, quarterly results and more.
Campbell's Company outgoing President and CEO Mark Clouse joins 'Mad Money' host Jim Cramer to talk what's next for the company, his decision to leave the position, quarterly results and more.
Campbell's shares have underperformed, gaining just 5% in the past year, with disappointing quarterly results and a CEO departure adding uncertainty. Revenue rose 10% due to the Sovos Brands acquisition, but organic net sales fell 1%, and margins compressed, limiting earnings growth. CPB faces margin pressure from rising input costs and sluggish core growth, with debt-funded M&A adding financial strain.