Campbell Soup Company
), a high-quality food and simple meal manufacturer, to beat
expectations when it reports third-quarter fiscal 2013 results on
Why a Likely Positive Surprise?
Our proven model shows that Campbell Soup may beat the
earnings because it has the right combination of two key
Positive Zacks ESP:
Campbell Soup currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +1.79%. This is because the Most Accurate Estimate stands at
57 cents per share, while the Zacks Consensus Estimate is pegged
at 56 cents.
Zacks #2 Rank (Buy):
Note that stocks with a Zacks Rank #1, 2 and 3 have higher
chances of beating the earnings. The Sell rated stocks (#4 and 5)
should never be considered going into an earnings
The combination of Campbell Soup's Zacks Rank #2 (Buy) and
Earnings ESP of +1.79% makes us confident of a positive earnings
beat on May 20.
What is Driving the Better-than-Expected Earnings?
Campbell Soup's sustained focus on top-line growth and
increasing return on investment through strategic frameworks
including stabilization of the North American soup and simple
meal business, overseas expansion, and growth of healthy
beverages and baked snacks business, bode well for the future.
Further, we believe that the company's prudent investment and
strategic initiatives toward product innovation and brand
building will lead to an increase in its customer base and
Campbell Soup has surpassed the Zacks Consensus Estimate in
the trailing 4 quarters with an average surprise of approximately
Other Stocks to Consider
Campbell Soup is not the only firm looking up this earnings
season. The following companies are also likely to beat the
earnings estimates in the to-be-reported quarter:
Flowers Foods, Inc
) with Earnings ESP of +6.98% and a Zacks Rank #1 (Strong
J&J Snack Foods Corp
) with Earnings ESP of +0.90% and a Zacks Rank #2 (Buy).
ConAgra Foods, Inc.
) with Earnings ESP of +1.70% and a Zacks Rank #3 (Hold).
CONAGRA FOODS (CAG): Free Stock Analysis
CAMPBELL SOUP (CPB): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
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