Valued at a market cap of $12.4 billion, The Campbell's Company (CPB) manufactures and markets food and beverage products. The Camden, New Jersey-based company operates through Meals & Beverages and Snacks segments and offers products through various renowned brands, including Campbell's, Goldfish, Kettle Brand, Prego, Rao's, Snack Factory, and Swanson, to name a few.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and CPB fits right into that category. The food and beverage company sells its products in over 120 countries and offers a wide variety of products, including baked goods, beverages, canned pasta, canned sauces, chocolates, crackers, cookies, fruit juices, and snacks.
CPB is currently trading 21.4% below its 52-week high of $52.81, reached on Sep. 10. Moreover, shares of this packaged food company have declined 19% over the past three months, significantly underperforming the broader Consumer Staples Select Sector SPDR Fund’s (XLP) 3.7% decrease during the same time frame.
Moreover, in the longer term, CPB has fallen 2.6% over the past 52 weeks, significantly lagging behind XLP’s 13.9% returns. Over the past six months, shares of CPB are down 7.3%, underperforming XLP’s 3% gains over the same time frame.
To confirm its bearish trend, CPB has been trading below its 200-day moving average since late September and has remained below its 50-day moving average since early December.
Shares of CPB tumbled 6.2% after its mixed Q1 earnings release on Dec. 3. The company’s revenue increased 10% year-over-year to $2.77 billion but missed the consensus estimates of $2.79 billion. On the other hand, its adjusted EPS of $0.89 decreased 2% from a year ago due to higher interest expenses but surpassed the forecasted figure by 2.3%.
Growth in revenues was fully backed by the Sovos Brands acquisition, while organic net sales dipped 1% due to a 1% decline in net price realization. Additionally, CPB announced that Mick Beekhuizen will be succeeding Mark Clouseas as the president, CEO, and director of the company from February 1, 2025.
CPB’s underperformance becomes more evident when compared to its rival, General Mills, Inc. (GIS), which declined 1.1% over the past 52 weeks and 4.6% over six months.
