$Campbell Soup(CPB)$ Released Q1 Fiscal 2024 Results:
Beats Earnings by ~3% & Misses Revenue expectations by ~0.03%
Total Revenue: $2.5 Bn, down 2% YoY, up 21% QoQ
Net Earnings: $234 MM, down 21% YoY, up 38% QoQ
Campbell To Acquire Rao"s Parent Sovos Brands For $2.33 Billion
After the earnings, $Campbell Soup(CPB)$ rose 7.11% and lead the $DJIA(.DJI)$. The stock price stands on a relatively converging price moving average, accompanied by an increase in trading volume. Looks like a nice break out。
From a weekly perspective, the price of $Campbell Soup(CPB)$ may be suppressed by the 30-week moving average price.
The monthly Chart shows that there is a better positive line uploading to 200DMA. The next stage of pressure may around $46 area.
Will $Campbell Soup(CPB)$ continue to make a positive breakthrough in the mid-term trend?
Does this company have fundamental support?
First, let take a look at the$Campbell Soup(CPB)$ ‘s fundamentals, its profitability(gross margin %), business efficiency(net income margin %), earning capability(ROA %) all keep stable growth, and the capability to repay shareholders improved significantly(ROE %).
As of company headlines recently, $Campbell Soup(CPB)$ is acquiring $Sovos Brands, Inc.(SOVO)$ for $2.7 billion, or $23 per share. The deal is facing concerns from the FTC regarding anti-competitiveness, causing a delay in the closing.
After the news since end of November, $Campbell Soup(CPB)$ rose over 10%, $Sovos Brands, Inc.(SOVO)$ also keep rising in recent days.
For $Campbell Soup(CPB)$ ‘s target price:
TipRanks
The average price target for Campbell Soup is $45.33. This is based on 7 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $50.00 ,the lowest forecast is $42.00. The average price target represents 10.53% Increase from the current price of $41.01.
Comments
$Campbell Soup(CPB)$ is acquiring $Sovos Brands, Inc.(SOVO)$ for $2.7 billion, or $23 per share. The deal is facing concerns from the FTC regarding anti-competitiveness, causing a delay in the closing.
In its recent earnings, Campbell Soup surpassed Wall Street expectations for quarterly profit, benefiting from higher prices for its packaged meals and snacks that helped offset a slowdown in demand from cost-conscious consumers.
Global producers of staple food have consistently bumped up product prices over the past year to counter higher input and labour costs, even as some of the expenses like those linked to supply chain have now come down from their peaks.
The company's ability to maintain a steady growth rate over a two-year period, despite the current year's decrease, shows its long-term brand strength and market positioning. The anticipated acquisition of Sovos Brands also hints at strategic expansion, potentially bolstering Campbell's market presence and product portfolio in the coming years.
Personally, I think this stock can be put in your watchlist. I will not invest in it due to its low volume and is a less famous stock. How do you think? [Blush] [Blush] [Blush] [Thinking] [Thinking] [Thinking] [Victory] [Victory] [Victory]
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