Should Investors Stay Away From Campbell Today?

Shares of broth behemoth Campbell Soup  (NYSE: CPB  )  fell today after the company announced so-so earnings. Campbell barely beat on earnings and missed slightly on sales, but the bigger issue was the measly 1% organic growth, which indicates a lack of demand for the company's products. On top of that, Campbell lowered guidance, sending investors running for the hills.

But where are all of these challenges for Campbell coming from? Motley Fool analyst Jason Moser thinks it's because we're in the middle of a shift in the way people think about what they eat. While we're all familiar with Campbell, companies like Whole Foods and Trader Joe's are offering their own compelling private-label brands and taking away market share. This forces Campbell to compete more on pricing, as well as think about acquiring more, which is an expensive way to find growth.

But is that reason enough for investors to stay away? On today's Stock of the Day, Jason says yes -- he doesn't see a surge in demand for soup coming anytime soon, and considering Campbell isn't even a $15 billion company, he doesn't like the prospect of it having to pay for growth going forward.

Will this stock be your next multibagger?
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2963573, ~/Articles/ArticleHandler.aspx, 8/28/2015 9:33:22 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Mark Reeth

Mark Reeth is an incredibly handsome Member Liaison, and is an expert on all things Foolish. Follow him on Twitter for all of the most important Fool news.

Today's Market

updated 12 hours ago Sponsored by:
DOW 16,654.77 369.26 0.00%
S&P 500 1,987.66 47.15 0.00%
NASD 4,812.71 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 4:02 PM
CPB $47.72 Up +0.29 +0.00%
Campbell Soup CAPS Rating: ***