Campbell Soup has performed a remarkable turnaround this year. Campbell has reported rising profits and sales the last three quarters in a row. On Monday the Relative Strength (RS) Rating for Campbell stock climbed to 81, up from 78. It passed a key benchmark along the way.
The upgraded 81 RS Rating shows that Campbell stock outperformed 81% of all stocks in IBD's database over the past year. It's notable because market research shows that the market's biggest winners often have an RS Rating north of 80 as they begin their biggest price moves.
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Among its other key ratings Campbell stock has an 80 Composite Rating, putting it in the top 20% of stocks overall, a strong 84 Earnings Per Share Rating and an equally strong B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale.
One yellow flag: It has a D Accumulation/Distribution Rating, showing that funds are selling more shares than buying. Look for that to improve to a C or better.
Campbell Stock Up Sharply On Rising Profits, Sales
Taking a look at revenue and profit performance, the company has posted rising EPS growth in each of the last three reports. Top line growth has also increased during the same period.
Camden, N.J.-based Campbell Soup reported flat earnings growth in the quarter ended Jan. 31, 10% growth and then a 26% jump last quarter to 63 cents per share. Revenue during that period rose from a 1% decline to 6% growth, then an 11% rise to $2.29 billion in its most recent report.
Campbell stock has risen about 33% in just under 12 months in sync with its improving fundamentals.
It's now considered extended using The IBD Methodology, and out of buy range after clearing a 45.96 buy point in a first-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Among Top 5 In Industry Group
Campbell stock earns the No. 5 rank among its peers in the Food-Packaged industry group. Freshpet is the No. 1-ranked stock in the group.
IBD's proprietary Relative Strength Rating tracks price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
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