The Campbell's Company CPB, together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products.
The stock is currently a Zacks Rank #5 (Strong Sell), with EPS revisions remaining bearish across the board.
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CPB Shares Keep Struggling
CPB shares have continued to see weak action in 2026, down nearly 25% and widely underperforming relative to the S&P 500. Quarterly results have largely been disappointing as of late, with shares facing pressure following its latest earnings release.
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CPB fell short of the latest Zacks Consensus EPS estimate by more than 10%, with sales also coming in 1.6% lower than expected. Concerning growth, sales fell by nearly 5% YoY, whereas earnings were down 31%. Earnings growth has been weak for the company over the last several years, as shown below.
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CPB also lowered its current-year outlook following the above-mentioned period, helping explain the downward revisions we’ve seen. The company does remain confident in a potential turnaround, though, looking to mitigate recent cost headwinds while also leaning into new product innovation.
The weak price action has boosted its dividend yield in a big way, though, with shares currently yielding a sizable 7.5% annually. That said, the weak EPS outlook remains a big headwind, with positive revisions needed in a big way to turn around sentiment.
Bottom Line
Negative earnings estimate revisions stemming from a guidance cut paint a challenging picture for the company’s shares in the near term.
The Campbell’s Company CPB is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
