Opinions
Jim Cramer - Mad Money
Campbell Soup Company
CPB-N
DON'T BUY
Jun 02, 2025
$34.250
Stock price when the opinion was issued
food processing
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PAST TOP PICK
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PAST TOP PICK
(A Top Pick Nov 12/20, Down 12.4%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with CPB has triggered its stop at $42. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 12%, when combined with the previous buy recommendation.
food processing
BUY
He recommends packaged food stocks as safe havens if there's a recession. CPB is up 22% this year. They keep putting up good numbers and just reported a 14-cent earnings beat, higher than expected sales (15% organic growth vs. expected 10%), and they raised their full-year forecast. There's more room to run.
food processing
BUY
Up 31% this year so far. They've always had strong brands. They had supply chain problems this year, but thankfully are in the past. They raised prices to offset shortages and won't lower prices now that supplies problems have ended. Last week they reported a monster earnings beat, 15% organic sales growth and a strong forecast. Looks very good for 2023.
food processing
TOP PICK
He's starting to see some good volume around the price level right now, potential bottoming. Trying to get out of soup. Acquiring some snack companies. Has the potential and the desire to turn around, though that will take a while. Good value right now. Yield is 4.89%.
Doesn't own yet, but plans to buy with proceeds from sale of other US stocks. Start with only a small position today. If it drops below $29, start reducing.
food processing
They just reported and today held their investors' call. They say that high prices are scaring away customers with spending starting to slow last January. There was weakenss in crackers and chips. Not helping are the new 50% tariffs on steel and aluminum, precisely what Campbell soup cans are made of. The company blames general economic weakness, but don't mention the GLP-1 drug. The latter makes sense, not general economic weakness. CPB pays a safe 4.5% dividend, but no, it isn't worth getting paid to wait, not with the weight-loss drugs still selling.