Campbell Soup (CPB) Is Weak On High Volume Today
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Campbell Soup as such a stock due to the following factors:
- CPB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $119.9 million.
- CPB has traded 1.3 million shares today.
- CPB is trading at 17.12 times the normal volume for the stock at this time of day.
- CPB is trading at a new low 6.00% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on CPB:
Campbell Soup Company, together with its subsidiaries, manufactures and markets convenience food products. It operates through U.S. Simple Meals; Global Baking and Snacking; International Simple Meals and Beverages; U.S. Beverages; and Bolthouse and Foodservice segments. The U.S. The stock currently has a dividend yield of 2%. CPB has a PE ratio of 29. Currently there are 2 analysts that rate Campbell Soup a buy, 3 analysts rate it a sell, and 7 rate it a hold.
The average volume for Campbell Soup has been 1.9 million shares per day over the past 30 days. Campbell has a market cap of $19.6 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.29 and a short float of 6.5% with 6.04 days to cover. Shares are up 21.8% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Campbell Soup as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins, good cash flow from operations, growth in earnings per share and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 44.78% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CPB should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- 40.75% is the gross profit margin for CAMPBELL SOUP CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.03% is above that of the industry average.
- Net operating cash flow has increased to $509.00 million or 28.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.12%.
- CAMPBELL SOUP CO has improved earnings per share by 19.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CAMPBELL SOUP CO reported lower earnings of $2.29 versus $2.32 in the prior year. This year, the market expects an improvement in earnings ($2.95 versus $2.29).
- CPB, with its decline in revenue, underperformed when compared the industry average of 17.6%. Since the same quarter one year prior, revenues slightly dropped by 1.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Campbell Soup Ratings Report.
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