Campbell Soup: An Analysis of Consensus Ratings and Quarterly Earnings
Campbell Soup Co. (NYSE:CPB) is a well-known establishment operating in the food and beverage industry, manufacturing and marketing a wide array of products under its Meals and Beverages as well as Snacks segments. The company has been closely monitored by investors, with its latest consensus rating registered as “Hold” by fourteen analysts who cover the entity. Bloomberg.com reported on this statistic, stating that while one analyst provided a buy recommendation, two others were inclined to suggest selling CPB shares. Eight analysts have recommended holding the stocks.
Nonetheless, when looking at Campbell Soup’s performance from its recent quarterly earnings report, released on March 8th of this year, things seem relatively optimistic for the company. With $0.80 earnings per share for the quarter, surpassing analyst estimates of $0.74 by $0.06, Campbell Soup registered an impressive return on equity of 26.97% and net margin of 8.86%. Revenue for Q1 was equally noteworthy at $2.49 billion during the quarter versus analyst estimates of $2.43 billion.
Comparing these statistics to results posted during the same timeframe last year provides insight into the corporation’s growth over time; during Q1 in 2020 CPB posted EPS of $0.87 along with revenue upwards of $2.21 billion marking an approximate increase of 12 .5% year-on-year.
It would appear that Campbell Soup remains optimistic for future financial quarters as sell-side analysts anticipate that it will project an earnings per share value around $3.01 in current fiscal conditions whether through changing Covid-19 implications or not.
To conclude , investment strategies vary dependent upon investor risk tolerance as well as other factors unique to each person’s decision-making process such tacit approval displayed towards CPB shareholding’s or distinct avoidance citing signified warnings from prevalent suggestion to sell shares however if reports are anything like Q1 earnings reports for CPB, some stockholders may await a consistent continued climb.
Campbell Soup Company: Analysis of Analyst Ratings and Institutional Investments
Campbell Soup Company: An Overview of Analyst Ratings
Campbell Soup Company has garnered the attention of several equities research analysts as of late. The company, which engages in the manufacturing and marketing of food and beverage products, has been given a diverse range of ratings by various brokering firms.
Credit Suisse Group was among the first to issue a report on Campbell Soup Company, announcing that it had raised its price objective from $50 to $51.00 and provided a “neutral” rating. This was quickly followed by Bank of America, who also increased its price objective from $50 to $51.00.
StockNews.com issued their view on Thursday, May 18th, giving the stock a “buy” rating for the company. In contrast, Stifel Nicolaus rated Campbell Soup shares as a “hold,” with a price objective of $55.00 in their report published on Thursday, April 13th.
Deutsche Bank Aktiengesellschaft entered into rating models for Campbell Soup but took a divergent stance by reducing their price objective from $54.00 to $53.00 while setting a “hold” rating for the company in their research note issued on Monday, March 20th.
At market opening on Friday morning NYSE:CPB opened at $51.46 per share with an impressive market capitalization value of $15.41 billion as well as an impressive Price-to-Earnings ratio at 19.06 and debt-to-equity ratio standing at 1:11 indicating potentially higher returns coupled with lower financial risk management strategies.
Looking further into CPB’s operations presents two primary segments within which it operates named Meals and Beverages and Snacks respectively offering soup-based products alongside other beverages consumables slightly differentiating itself from its snacks sector offerings consisting primarily cookies snacks hence diversifying its consumer signals thus widening revenue stream available to them
Institutional investors have recently made substantial changes to their positions in the stock, thus cementing its place further still within the market. Gradient Investments LLC recently purchased an additional 227 shares in Campbell Soup raising its holdings in the company by 77.7% in first quarter this year. Similarly, Mitsubishi UFJ Morgan Stanley Securities Co. Ltd., also recent entry bought into CPB with two more institutional investors pushing CPB towards greater financial heights.
In conclusion, based on prevailing ratings as well many analysts’ reports revealing positive outlook for CPB as of late coupled with a broadening revenue stream and significant support from institutional investors make Campbell Soup Company a great investment opportunity that can potential bear decent returns.
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