CPB Is In Its Sweet Spot


CPB is the perfect stock for this market and now represents a nice entry – “CPB Is The Perfect Stock For This Market”, Top Gun Financial, March 10, 2022

Top Gun has been long Campbell Soup (CPB) for a year now when I bought it into a pullback at $42.25 – and I see no reason to sell now even though the stock is +25%. That’s because the fundamental story continues to be stellar.

CPB reported another great quarter this morning. Organic sales were +13% and adjusted EPS +16% for the quarter ended January 29, 2023. CPB also raised its FY23 guidance for organic sales, EBIT and adjusted EPS.

At a current $52.50, CPB is not as cheap as when I bought it but is still a good value at 17.6x current year EPS guidance. It also pays a 2.82% dividend.

Many investors would never consider a stock like CPB because it’s boring. Though it has great brands, there’s nothing sexy about Campbell Soup or Pepperidge Farms. The only thing sexy about the stock is that it keeps going up. Price Target: $60.

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