Campbell Soup (CPB) is more than America’s staple soup brand or a famous Andy Warhol painting; The Campbell Soup Company is a potential stock pick. The recent rate hikes and food inflation felt nationwide have made brands such as Campbell Soup a popular alternative for American families, but is that popularity transferring over into the stock market? Campbell seems to think so! The company released its expectations for next year and news of an expansion this morning, showing analysts an optimistic forecast for its fiscal year 2024. The positive outlook sent the stock up pre-market by 0.6%, but let’s go deeper into the analysis before being sold on the stock just because soup is good for the soul.
The other details in the company’s guidance for 2024 include an improvement in earnings per share (EPS), which shifted into the range of $3.05-3.15, an increase of 3-5%. On top of an increase in EPS, the organic net sales are predicted to be 0%-2%. Along with the positive outlook in numbers, the CEO commented on the acquisition of a company; “we remain excited about adding the Sovos Brands portfolio and expect to close the transaction in calendar year 2024,” affirming the company’s continued overall growth and influence.
However, the 2024 guidance and pre-market surge aren’t automatic signs for long-term investors to jump in. A more well-rounded analysis must occur, even with a company’s positive outlook, to ensure a successful investment.
To get that well-rounded analysis, VectorVest uses advanced software to get the big-picture snapshot of a company’s potential. It considers more than the company’s guidance or individual analyst opinions; instead, it uses a plethora of data and financial metrics. The analysis of Campbell Soup will show you three different points along with a recommendation to enhance your perspective of the company.
Campbell Soup Predicts Success, but Not Your Success!
The Campbell’s stock is trending, but trending stocks still need analysis. VectorVest system simplifies the analysis process by doing the heavy lifting with intricate financial metrics. It generates three summary ratings: relative value (RV), relative safety (RS), and relative timing (RT), each scored from 0.00 to 2.00, with 1.00 representing the average. Additionally, the overall VST (Value-Safety-Timing) rating provides a decisive buy, sell, or hold suggestion for a specific stock. In the case of Campbell (CPB), the stock analysis has an overarching recommendation of HOLD. This recommendation allows you to have a firm answer on what to do without any guesswork.
- Very Good Upside Potential: The Relative Value score for CPB is 1.24, making it very good on a scale of 0.00 to 2.00. It is presently undervalued with a current price of $43.23 and a $54.27 value; that analysis makes sense with the company’s 2024 outlook.
- Poor Safety: CPB has a Relative Safety score of 0.74, which is poor on a scale of 0.00 to 2.00, so despite the positive outlook, there are still stock safety performance concerns surrounding the company.
- Fair Timing: Relative timing of 1.12 for CPB is fair on a scale of 0.00 to 2.00. The metric considers the stock movements on a daily, weekly, quarterly, and yearly basis, so the timing is fair based on the upcoming holiday season and the potential for downturns once it’s over.
Campbell Soup’s overall VST rating of 1.05 is considered fair, slightly above average, and accompanied by a HOLD recommendation in the VectorVest system. HOLD indicates that if you own the stock, hold it in your portfolio, and don’t sell it, but if you’re not already invested, don’t go buying it for your portfolio.
The bigger picture provided by VectorVest is that despite the company's gains this morning, some stock metrics still challenge whether investing right now will benefit your portfolio. Campbell Soup predicts company success next year, but that doesn’t automatically mean you’ll be making gains with it. You can learn more about how the system works or the current opportunity with any given stock through a free stock analysis today!
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VectorVest advocates buying stocks with a proper analysis to see the whole picture. Campbell Soup was surging in the market, and CPB was gaining because of the guidance report and acquisition of Sovos Brand. However, VectorVest uncovered more financial information. The stock has very good upside potential, poor safety, and fair timing right now, with a recommendation to HOLD. Allowing you to see all the necessary components to make an informed decision.
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