Here's Why Campbell Soup (CPB) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Campbell Soup (CPB)
Based in Camden, NJ, Campbell Soup Company, together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products. The company was instituted as a business corporation on Nov 23, 1922 under the laws of New Jersey.
CPB is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 14.4X for the current fiscal year compared to the Food - Miscellaneous industry's P/E of 17.1X. Additionally, CPB has a PEG Ratio of 3.7 and a Price/Cash Flow ratio of 10.3X. Value investors should also note CPB's Price/Sales ratio of 1.4X.
A company's earnings performance is important for value investors as well. For fiscal 2024, three analysts revised their earnings estimate higher in the last 60 days for CPB, while the Zacks Consensus Estimate has increased $0.02 to $3.08 per share. CPB also holds an average earnings surprise of 5.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CPB to their portfolios.
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Campbell Soup Company (CPB) : Free Stock Analysis Report
