Campbell’s valuation and income profile are striking. The shares trade at a P/E multiple of just 9.7 times forecast earnings, which is significantly below the broader U.S. market multiple and below many consumer staples peers. Yet the current yield is extremely high for a consumer defensive name and suggests investors are being paid handsomely to wait for operational and sentiment recovery.
Second, the business is anchored by durable brands, scale, and a defensive category mix, all of which tend to hold up in economic downturns. Roughly 90% of revenue comes from the U.S., and snacks now make up about 43% of revenue while soup contributes about 27%, other simple meals 23%, and beverages 7%, giving the business a diversified yet still “center‑of‑store” profile that can benefit from pantry‑loading or recessionary trading down.
For value‑oriented and income‑focused investors, this pick offers a combination of a discounted multiple, strong cash conversion, and a long history of dividend payments in a sector where demand is inherently stable.
CAMPBELL’S CO. (Nasdaq symbol CPB; www.thecampbellscompany.com) recently changed its name from Campbell Soup Co. to reflect its broader array of products, including soups, sauces and snack foods. It also transferred its stock listing from the New York Stock Exchange to Nasdaq (the shares continue to trade under the “CPB” symbol).
Campbell’s recently agreed to acquire a 49% stake in La Regina, the privately held business that makes its Rao’s cooking sauces. It paid $286 million when it completed the purchase in mid-2026. It also has an option to buy the rest of the Italian food manufacturer.
The transaction comes two years after Campbell’s announced the $2.7 billion acquisition of U.S. group Sovos Brands, which gave Campbells’ ownership of Rao.
In its fiscal 2026 second quarter, ended February 1, 2026, sales fell 4.5%, to $2.56 billion from $2.69 billion a year earlier. That missed the $2.61 billion consensus forecast. If you exclude businesses that Campbell’s bought and sold, sales declined 3% in the latest quarter.
The lower sales are largely due to lower sales of snack foods due to strong price competition. In response, it plans to launch new products and offer special promotions. Disruptions due to winter storms in the U.S. also accounted for about 1% of the sales decline.
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Without unusual items, the company’s earnings fell 31.1%, to $0.51 a share (or a total of $152 million) from $0.74 a share (or $222 million). That also missed the consensus estimate of $0.57 a share.
Dividend investors eye Campell’s Co. at a bargain
Campbell’s is facing higher costs for food ingredients, particularly beef, as well as new tariffs on packaging materials like steel and aluminum.
In response, the company continues to improve efficiency. So far, the plan has cut $180 million from its annual costs. It expects these savings will rise to $375 million by the end of fiscal 2028.
For all of fiscal 2026, Campbell’s will probably earn between $2.15 and $2.25 a share. That’s down from its earlier forecast of $2.40 a share to $2.55 a share. The stock trades at 9.7 times the midpoint of that new range. That’s a reasonable multiple considering the company’s strong brands and market share.
The stock yields a high 7.2%--and the dividend appears sustainable.
Recommendation in Wall Street Stock Forecaster: Campbell’s Co. is a buy.
