Campbell Soup shares could be a bargain after decline: Barron's
Reuters
Published Mar 11, 2018 06:44PM ET
Campbell Soup shares could be a bargain after decline: Barron's
(Reuters) - Campbell Soup Co (N:CPB) faces challenges but with its shares the cheapest they have been in years, the stock may be a bargain, Barron's said in an article on Sunday.
Campbell faces a grocery war. Walmart Inc (N:WMT), Amazon.com Inc (O:AMZN), dollar stores like Dollar General Corp (N:DG) and drugstores like CVS Health Corp (N:CVS) are vying to take share from traditional grocers, according to the article.
A recent squabble with Walmart over soup promotions cut into Campbell's sales, but Barron's said the grocery war was also a sales opportunity since Campbell plans to expand distribution through dollar stores and drugstores.
Campbell is expected to grow revenue by a fraction of 1 percent in its fiscal year through July, while increasing earnings per share by 2 percent, Barron's said.
With shares trading below $42 earlier this month, their lowest since 2014, Barron's noted, "The discount on shares may be too large to ignore." Campbell shares closed at $43.61 on Friday.
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Written By: Reuters
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