I came across an article on Yahoo Finance about Campbell Soup that highlighted the following:
Campbell’s cost-saving endeavors and the aforementioned drivers should help it stay protected. Incidentally, in the second quarter, the company generated savings worth $50 million as part of its multi-year cost-savings program. Further, management anticipates to generate cumulative annualized savings of $945 million by fiscal 2022 end. These factors along with Campbell’s prudent investments and efforts toward product innovation and brand building are likely to boost profitability and enable it to stay in investors’ good books.
But this is why you should stay away from Campbell Soup. But Campbell’s is selling its fresh food businesses to refocus on snacks and meals and beverages, including soup. But millennials want fresh food.
The millennials are adults from ages 19 to 35, are now the biggest group of the American workforce, who haven’t yet reached their peak earnings. As a result, businesses should be providing services and/or products that make millennials happy. And good, fresh, healthy food like cage-free eggs and preparation meals with fresh ingredients makes millennials happy. But Campbell’s is selling its fresh food businesses to refocus on snacks and meals and beverages, including soup.
So, although Campbell Soup has rallied 10.6% in the past three,
the path they are travelling moving forward is the recipe for disaster. Thus, the chart suggest to short price at the daily demand at $42.50.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.