Campbell Stock Hits 52-Week Low: Temporary Dip or Deeper Concern?

Core Insights - Campbell's Company (CPB) has faced significant challenges in 2025, with its stock down 20.4% year to date, underperforming the S&P 500's 1.8% growth and the Zacks Consumer Staples sector's 6.6% return [1][8] - The company's stock closed at $33.32, just above its 52-week low of $32.83, and is trading below both its 50-day and 200-day moving averages, indicating ongoing weakness in momentum and investor sentiment [4][5] Company Performance - CPB's Snacks segment has been particularly weak, with net sales in the division totaling $1,012 million, down 8% year over year, and organic net sales down 5% when excluding the Pop Secret divestiture [9][10] - The decline in the Snacks segment is attributed to a 5% drop in volume/mix, with net price realization remaining flat, and management expects a slower recovery than initially anticipated [10][11] - The company is also facing persistent cost inflation, leading to a decline in adjusted gross profit margin by 110 basis points to 30.1% in the third quarter of fiscal 2025 [11][12] Financial Outlook - Campbell's has reaffirmed its full-year guidance, projecting organic net sales to range from a 2% decline to flat year over year, with adjusted EBIT estimated to grow 3-5% [13] - Adjusted EPS is expected to decline by 4-1%, in the range of $2.95-$3.05, compared to $3.08 reported in fiscal 2024 [13][14] - The overall operating landscape remains tough, with inflation-driven margin erosion and a subdued earnings outlook contributing to the stock's underperformance [14]