Campbell Soup Stock Red-Hot After Blowout Earnings

Cost-cutting helped fuel an earnings and revenue beat

Managing Editor
Aug 30, 2019 at 9:54 AM
facebook twitter linkedin


A big earnings winner this morning is Campbell Soup Company (NYSE:CPB), with the packaged food titan reporting adjusted fiscal fourth-quarter earnings and revenue that topped estimates. Net sales rose by 2%, as well, while gross margin increased to 34% from 31.4%. The company cited cost-cutting, and a better focus on its mainstream businesses as reasons for the strong quarterly report.

This has Campbell Soup stock up 5.7% to trade at $45.80 this morning, earlier nabbing a fresh annual high of $45.80. CPB rode an earnings-induced bull gap to new heights back in early June, and was trading near these former highs heading into today after a big bounce off its 40-day moving average.

No bull notes have come through on CPB yet, despite the blowout report. The stock certainly seems overdue for upbeat analyst attention, which could help push the security even higher. While all seven of the brokerages in coverage rate Campbell Soup a "hold" or worse, the consensus 12-month price target sits at $39.57, a discount to current trading levels.

A short squeeze could also fuel additional gains. Short interest sits at its highest point since early May, and accounts for 13.2% of CPB's total available float. At the stock's average pace of trading, it would take shorts more than 10 days to buy back their bearish bets. This is an ample amount of buying power that could boost the stock.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners