Campbell Soup Stock Is Down 20% From Its High. Time to Buy?
Investors looking for bargains often look at stocks that are trading near their 52-week lows. Campbell Soup (NYSE: CPB) is in the middle of its 52-week range and beats the average consumer-staples stock (using Vanguard Consumer Staples ETF as a marker) in performance over the past month. That strong showing is thanks at least partly to a strong fiscal 2023 second-quarter (ended Jan. 29) earnings performance.
If you expand beyond near-term performance, though, the iconic soup maker is still well off its highs and severely lagging behind its peers.
If you go back to the middle of the last decade, food maker Campbell Soup stock still trades down around 20% from highs set then. Going back to the start of the period, the stock is up just shy of 30% compared to a 90% gain for Vanguard Consumer Staples ETF. In other words, despite the strong recent performance, Campbell Soup still looks like an absolute and relative laggard over the longer term. This raises the obvious question: "What went wrong?"
Source Fool.com
