Why Campbell Soup, Signet Jewelers, and DSW Slumped Today
Tuesday was another great day for the stock market, as investors seemingly got an early start on their holiday celebrations. The Dow Jones Industrials climbed triple digits to move into record territory, while other benchmarks also posted solid gains of around 0.5% to 1%. Strength in the technology industry was particularly noteworthy, but gains were widespread across the market as investors responded favorably to good prospects for economic expansion as well as progress on tax reform. Yet some individual stocks didn't react in the same way as the broader market, and Campbell Soup (NYSE: CPB), Signet Jewelers (NYSE: SIG), and DSW (NYSE: DSW) were among the worst performers on the day. Below, we'll tell you why they did so poorly.
Shares of Campbell Soup dropped 8% after the soup maker reported its first-quarter financial results. Revenue sagged 2% on an 8% drop in adjusted earnings per share, but particularly troubling were comments from the company that one of its major customers disagreed with Campbell about how to promote soup products in the coming fiscal year. The company now expects earnings to decline in fiscal 2018 compared to the previous year, reversing previous guidance for a possible rise on the bottom line. With Campbell having had to deal with a long secular decline in demand for its products, greater competition and operational challenges are just another difficulty that the company will have to overcome.
Image source: Campbell Soup.
Source: Fool.com
Campbell Soup Co. Stock
With 1 Sell predictions and 1 Buy predictions the community sentiment towards the Campbell Soup Co. stock is not clear.
With a target price of 42 € there is a slightly negative potential of -1.69% for Campbell Soup Co. compared to the current price of 42.72 €.
