Over the past six months, Campbell’s shares (currently trading at $26.90) have posted a disappointing 17.3% loss, well below the S&P 500’s 6.5% gain. This might have investors contemplating their next move.
Is now the time to buy Campbell's, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free.
Why Do We Think Campbell's Will Underperform?
Even with the cheaper entry price, we don't have much confidence in Campbell's. Here are three reasons there are better opportunities than CPB and a stock we'd rather own.
1. Sales Volumes Stall, Demand Waning
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
Campbell’s quarterly sales volumes have, on average, stayed about the same over the last two years. This stability is normal because the quantity demanded for consumer staples products typically doesn’t see much volatility. 
2. Revenue Projections Show Stormy Skies Ahead
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Campbell’s revenue to drop by 2.4%, a decrease from This projection doesn't excite us and implies its products will face some demand challenges.
3. EPS Trending Down
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Sadly for Campbell's, its EPS declined by 1.3% annually over the last three years while its revenue grew by 4.5%. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
We cheer for all companies serving everyday consumers, but in the case of Campbell's, we’ll be cheering from the sidelines. After the recent drawdown, the stock trades at 11× forward P/E (or $26.90 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. There are better investments elsewhere. Let us point you toward the Amazon and PayPal of Latin America.
Stocks We Like More Than Campbell's
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
