Campbell's: Times Are Tough, But Shares Are Cheap Enough To Ride The Pain Out

Daniel Jones Investing Group Leader Follow Summary The Campbell's Company remains a Buy despite deteriorating fundamentals, as shares are unreasonably cheap both absolutely and relative to peers. CPB faces revenue and profit declines due to volume weakness, private label competition, and cost inflation, but productivity improvements partially offset these pressures. Management expects organic revenue to drop 1–2% and adjusted EPS between $2.15 and $2.25 for the year, with further weakness likely in the upcoming quarter. While near-term pain is anticipated, CPB's brand strength and valuation justify patience for long-term investors, warranting a soft Buy rating. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » TechnicColor/iStock via Getty Images Successful value investing typically requires patience. This is because the companies that are value plays have a tendency to be unloved by the market. This means that the price can become detached from the overall value of This article was written by Daniel Jones 37.78K Followers Follow Daniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.