Campbell Soup Will Struggle To Turn The Tide

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About: Campbell Soup Company (CPB)
by: Marcello Pinto
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Marcello Pinto
Long only, Deep Value, special situations, long-term horizon
Summary

Packaged goods companies have struggled of late as competition from private label continues to intensify. Campbell Soup has been no exception.

Asset sales are unlikely to command a significant premium as the company's growth is slow and acquisitions diluted earnings.

No significant earnings growth or share repurchases means that the stock has limited upside. Debt also burdens the balance sheet.

Campbell Soup (CPB) has been struggling lately. Similar to other packaged goods companies, the major challenge facing the firm has been competition from private label brands and discount retailers. Over the last