Is It Time to Buy Campbell Soup?
Campbell Soup Company (NYSE: CPB) recently reported fourth-quarter (ended Aug. 2) earnings per share that were higher than the consensus estimate, and revenue that was in line. The company continued to see heightened demand in its meals and beverages segment and its snacks segment as consumers favored eating at home over dining out, largely due to COVID-19. However, shares are trading down about 13% over the last five days. Could this be a good time to consider shares of the company known for its comfort foods?
Since the onset of the coronavirus pandemic, people have been cooking and eating more at home, including snacking. These shifts have lifted demand for Campbell's products. During the third quarter (ended April 26), CEO Mark Clouse noted that, " ...unprecedented broad-based demand across our brands as consumers sought food that delivered comfort, quality, and value. This demand resulted in double-digit increases in organic sales, adjusted EBIT, and adjusted EPS". The increased demand continued into the fourth quarter.
Image source: Campbell Soup Company.
Source Fool.com
