Trade-Ideas LLC identified

Campbell Soup

(

CPB

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $127.7 million.
  • CPB has traded 1.7 million shares today.
  • CPB traded in a range 270.6% of the normal price range with a price range of $3.15.
  • CPB traded above its daily resistance level (quality: 44 days, meaning that the stock is crossing a resistance level set by the last 44 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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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 28. 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 2.0 million shares per day over the past 30 days. Campbell has a market cap of $19.4 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.32 and a short float of 5.8% with 5.92 days to cover. Shares are up 19.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Campbell Soup as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations, expanding profit margins, 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 29.71% 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.
  • Net operating cash flow has increased to $456.00 million or 17.82% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.11%.
  • 39.36% is the gross profit margin for CAMPBELL SOUP CO which we consider to be strong. Regardless of CPB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CPB's net profit margin of 9.89% compares favorably to the industry average.
  • CAMPBELL SOUP CO's earnings per share improvement from the most recent quarter was slightly positive. 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 $2.28 versus $2.32 in the prior year. This year, the market expects an improvement in earnings ($2.97 versus $2.28).
  • CPB, with its decline in revenue, underperformed when compared the industry average of 16.6%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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