August 2022 Campbell Soup Company (CBP) Stock Pick and Larceny Single Barrel Whiskey Pairing

Campbell Soup Company

(CPB)

August 2022

Authors: James Hatfield, Allan Maule, Byron Harrell

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Website: CampbellSoupCompany.com

Twitter: @CampbellSoupCo

CEO: Mark Clouse

Founder: Joseph Campbell and Abraham Anderson

Market Cap at Time of Article: 14.83B

Current Analyst Recommendations: With a current stock price of $49.35 and an average analyst target price of $49.35 (taken from 17 analysts), we see CPB as a buy. While the average analyst rating is a 3 (where 3 is a Hold and 4 is a Buy) we view CPB more in the Buy, so we give it a 2.

Quarterly Revenue Growth Year-Over-Year: 7.40%, which is OK for an established company in this industry. Amidst the chaos in the market right now, look for companies that will be here for years to come that are making great quarterly revenues like CPB.

Insiders: 35.69%, which is a strong percentage of insiders. We always like to see a high percentage of insiders, especially when looking at companies to invest in over the long term. Campbell Soup Company is a company where we see lasting value, and its current price point makes it a can't miss for the long haul.

What makes Campbell Soup Company (CPB) worth your hard-earned money for the next decade or more?

Campbell Soup Company is a buy and hold stock for your lifetime. At WW, we have targeted high-growth companies in our portfolio of picks so it’s time to add “stable” companies that pay dividends to give you a nice balance of growth and stability. The Campbell Soup Company is more than 150 years old and we can’t see this company going away for the foreseeable future as their meals, beverages and snack products can be found in 95% of American households.

The current market cap for CPB is 14.83B, which is not as large when you think about other companies in the convenience foods space. This means we have room to grow for decades. In addition, CPB pays a dividend every quarter to shareholders and the current percentage is 3%, meaning for every $100 you own you will get $3 a year in dividends. CPB also has a track record of increasing their dividends, so the stock you continue to hold will pay a larger and larger dividend over the year for all your shares.

Why talk about Campbell Soup (CPB) to all your friends and family?

The story of this stock is easy for everyone in your family to grasp. We all know (and many love!) their products: Campbell soup, Cape Cod chips, Goldfish crackers, V8, Spaghettios, Pace salsa, Snyder’s chips, Prego, Lance crackers, and on and on and on. They make some of my favorite snack foods of all-time, and I expect to keep eating them as long as I’m alive. But beyond my personal experience, consumers love reliable tastes that they have grown up with and will not only buy for themselves, but for others and their families. The strong dividend payment also makes CPB an easy company to recommend to friends and family when people buy their first stocks.

How is this company disruptive?

Well, the Campbell Soup Company puts soup in a can and it lasts a long time. Let’s face it, CPB is not the most exciting choice of investment—BUT if the economy continues to slide and household costs rise, then people will go out to eat less and turn to easy meals like soup, crackers, chips, and cookies. For people who spend a lot on eating out and ordering food multiple times a week, rediscovering the cost-effective thrift of Campbell Soup Products is indeed disruption. When everyone in the investing world obsesses over new and shiny companies, the old back to basics strategy of prioritizing long term growth and dividends becomes new and smart again.

Conclusion:

You can buy this stock every single month, add to it for your entire life, and look forward to decades of dividends to reinvest however you like. We consider CPB a no-brainer stock for anyone and if you think now is a great time to buy low (and at WW, we definitely do!), load up on Campbell Soup Company. Don’t lose heart during a down economy; in fact, buy some tomato soup and some goldfish to help warm up your mood.

Whiskey Pairing: Larceny Single Barrel Bourbon    Retail: $70 Proof: 92

“Did you ever steal when you were a kid?”

“Fishing lures. I hid some in the tackle box I bought.”

LARCENY

“What about you?”

“Beer. My buddy put it in the back of the grocery store and we grabbed it when we picked him up from work.”

GRAND LARCENY

Enjoying this fine whiskey, I reflected that we are no longer the kids who stole things before we learned better. We are older, we have more money, and we experience different consequences, which is probably why we stop calling this crime stealing. As an adult, it’s larceny. As my imagination flows with dram after dram of this bourbon, I devise a more calculated approach to potential white collar crimes of delight. Then I embrace the ease of dividends and watching the dollars slowly roll in, quarter after quarter.

Grown up Byron still takes shots of Jim Beam, but I also sip the small batch spirits like Larceny slowly and with discipline to fully appreciate the finer things. Whether you’re eating a perfect meal or rediscovering the canned soup of your youth (or both), such things are best when we take time to enjoy it.

The Nose, Pallet, and Finish

The Larceny experience is as if a Cherry-Vanilla Coke cleared out my sinuses. There are no mixtures or additives, but there is still something new every time. The sweetness from the wheat gave my belly the fire that I love so much. Afterward, it leaves us with that sweet coating in my mouth that makes me feel like a fat kid eating sweet tarts and gummy bears. Recommended, and a stellar spirit for the price.

Score

4.25