Campbell Soup (CPB) Stock Forecast & Price Target

Campbell's has successfully diversified its revenue streams, with snacks now comprising 43% of sales, followed by soups at 27%, indicating a strong alignment with consumer preferences for convenient and snackable options. The company's operational efficiency is improving as it manages lower incentive costs and advertising expenses, which may enhance profitability in the medium term. Furthermore, despite facing challenges such as potential tariff impacts and increased marketing investments, Campbell's is expected to offset these headwinds through cost-saving measures, maintaining a stable path for future earnings growth.

Campbell's has experienced a significant challenge in its Snacks segment, reporting a -3.5% decline in retail sales for the fiscal year-to-date of 2025. Additionally, the company is facing an earnings impact from the lapping of a 53rd week, resulting in a $0.06 hit to its fourth quarter fiscal 2026 EPS estimate, which was not previously accounted for in the financial model. These factors contribute to a negative outlook on the company's stock performance, as declining sales and adjusted earnings projections signal potential underlying weaknesses in its revenue growth strategy.