Topic: How To Invest

Wall Street Stock Forecaster Hotline Friday, September 4, 2020

Article Excerpt

CAMPBELL SOUP CO., $47.58, New York symbol CPB, is a buy. The company recently completed a strategic review of its operations. As a result, it has sold most of its international and refrigerated-foods businesses. That will let it focus on canned soups, pasta and V8 vegetable juices. Campbell will also keep its snack foods operations. They were significantly expanded in March 2018 when the company paid $6.1 billion for snack-foods maker Snyder’s-Lance. Demand for canned foods and snacks remains strong as more people eat at home during the pandemic. In its fiscal 2020 fourth quarter, ended August 2, 2020, Campbell’s sales rose 18.4%, to $2.11 billion from $1.78 billion a year earlier. That beat the consensus forecast of $2.07 billion. If you adjust for the businesses Campbell sold, sales improved 12% in the latest quarter. The company also continues to find savings in the wake of the Snyder’s-Lance acquisition. So far, it has reduced annual costs for its continuing businesses by $725 million…