Financial Trading Blog
Stock of the day 24/11/2014 – Campbell Soup Co
The last earnings release from the food company came in September, and was a generally positive collection of results. The fourth quarter and full year results saw a sales increase of 7% countered by a 2% decrease in organic sales. Despite this, the full year prediction for earnings before tax and interest was up 4%, as revenue in the quarter reached $1.85 billion, aiding Campbell Soup’s 7.5% increase in year on year quarterly profit. These figures all contributed to Campbell Soup’s 1.7% sales growth in the last 5 years.
What does this mean for Campbell Soup’s shares prices? The day of the fourth quarter earnings release saw shares drop 2.58%. However, it rallied a few days later to 4412.5 before slipping for nearly all of October. The tail end of October saw the beginning of a recent upward trend with only a few minor wobbles, as the stock today opened at 4504 after closing last Friday at 4471.5.
These numbers are good, especially when looking at the bigger picture for the company. Friday’s close is only 150 points away from its 2014 high of 4666.55. Its current price is nearly equidistant between its all-time low and its all-time high; the latter was 3962 in February 2014, whilst the latter came in May 2013 at 4849.5.This level price, suggesting a company that is performing well, but not performing at its peak, is reflected in the analysts at Zacks and Morningstar giving similar a neutral rating to the stock.
Campbell Soup is looking to launch over 200 products in 2015, after 2014 saw a strong expansion overseas and a consolidation of the US market. It also saw the acquisitions of Bolthouse Farms, Plum Organics and the Kelsen Group, helping it to grow and diversify into the market share of healthier snacks. The signs look positive for Campbell Soup Co. It will be hoping that after its announcement tomorrow, it will not need to resort to its signature product for comfort.
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