Summary
- Campbell’s Company (CPB) is rated Buy, offering turnaround potential from distressed levels, supported by strong brands and a solid dividend yield to reward investors.
- CPB trades below intrinsic value, with reaffirmed FY26 guidance and ongoing cost savings initiatives targeting $375 million by FY28.
- Risks include tariffs, weak consumer demand, regulatory headwinds, and high leverage, but CPB’s diversified …
Summary
- Campbell’s Company (CPB) is rated Buy, offering turnaround potential from distressed levels, supported by strong brands and a solid dividend yield to reward investors.
- CPB trades below intrinsic value, with reaffirmed FY26 guidance and ongoing cost savings initiatives targeting $375 million by FY28.
- Risks include tariffs, weak consumer demand, regulatory headwinds, and high leverage, but CPB’s diversified brand portfolio and international expansion offer mitigation.
- Strategic acquisitions like Sovos Brands (owners of Rao’s) or La Regina and a portfolio of "better-for-you" brands position the company to adapt to shifting consumer health trends, including GLP-1 usage.
VelhoJunior/iStock Editorial via Getty Images
Introduction & Financials
The Campbell’s Company (CPB) is trading around some of their lowest levels in history, offering quite a bit of turnaround potential from the currently distressed levels despite the ongoing macro pressures
This article was written by
1.79K Followers
**Analyst’s Disclosure:**I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CPB, over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Quick Insights
No, Campbell’s is not among the 10 major companies named in the December 2025 San Francisco lawsuit regarding ultra-processed foods, though it faces similar industry-wide scrutiny under MAHA initiatives.
CPB expects to mitigate ~60% of tariff costs in 2026, continues to execute on $375 million in cost savings through FY28, and leverages brand synergies and operational improvements.
A former executive was fired after a recording surfaced in which he falsely claimed the company used "3D printed" and "bioengineered" chicken; Campbell’s refuted this, confirming they use USDA-approved chicken.