Why The Campbell’s Company (CPB) Went Down on Wednesday

We recently compiled a list of the 10 Stocks Defy Market Optimism as Investor Caution Lingers. In this article, we are going to take a look at where The Campbell’s Company (NASDAQ:CPB) stands against the other stocks.

The stock market stood its ground on Wednesday, with all major indices eking out gains as President Donald Trump softened trade restrictions for three large automakers, reviving hopes that the trade war may not be as bad as it seemed.

The Dow Jones grew 1.14 percent, the S&P 500 rose by 1.12 percent, while the tech-heavy Nasdaq jumped 1.46 percent.

On Wednesday, the White House granted three large automakers a one-month exemption from tariffs after a call with the president, sending their share prices higher during the session.

Ten firms, however, bucked an overall optimism, recording modest declines during the past trading session. In this article, we have listed the 10 names and detailed the reasons behind their performance.

To come up with Wednesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A woman preparing a meal using packaged foods with V8 juices and the other products of the company in the background.

The Campbell’s Company (NASDAQ:CPB)

The Campbell’s Company (NASDAQ:CPB) declined by 2.85 percent on Wednesday to finish at $39.18 apiece as investor sentiment was weighed down by its pessimistic outlook for the second half of the year.

“Given the softness in some of our snacking categories, the anticipated sequential top-line improvement did not materialize during the quarter, and we now have a more muted second-half expectation,” said CPB CEO Mick Beekhuizen.

In the last three months ending January 26, 2025, The Campbell’s Company (NASDAQ:CPB) saw net income drop by 15 percent to $173 million from $203 million in the same period a year earlier despite net sales growing by 9 percent to $2.685 billion from $2.456 billion year-on-year.

In the first half of the fiscal year alone, net income declined by 10.5 percent to $391 million from $437 million while net sales grew 10 percent to $5.457 billion from $4.974 billion year-on-year.

Overall CPB ranks 7th on our list of Wednesday’s worst performers. While we acknowledge the potential of CPB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CPB but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.