The Crowd Is Selling Campbell’s Stock. Here’s Why It’s a Buy Instead.

The soup has gone cold, or at least that’s what The Campbell’s Company (CPB +0.98%) stock has felt like over the past few years. Shares of Campbell’s have fallen nearly 30% in the past 12 months, and almost 50% over the last five years. The bear case is simple: Sales are falling, margins are compressing, and tariffs created an unexpected headwind for the business. Still, I think this more than a century-old consumer staples company is a buy for long-term investors. 

Today’s Change

(0.98%) $0.23

Current Price

$23.09

Key Data Points

Market Cap

$6.8BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$22.84 – $23.51

52wk Range

$19.55 – $34.17

Volume

859.4K

Avg Vol

8.3M

Gross Margin

28.48%

Dividend Yield

6.82%

First, at the current share price, Campbell’s dividend yield is nearly 7%. It offers a consistent quarterly payout of $0.39 per share. Campbell’s funds its dividend with stable cash flow from operations. The consumer staples company reported $839 million in cash generated over the first nine months of its fiscal 2026. Despite tough economic conditions, the dividend isn’t at risk.

The stock is also relatively cheap, as it trades at a forward P/E of 12, a trailing P/E ratio of 11, and a PEG ratio of less than 1. In June, Campbell’s was added to both the Russell 2500 and Russell 2500 Value indexes, potentially improving investor confidence and visibility.

Image source: Getty Images.

More importantly, Campbell’s management has a turnaround effort underway. The company bought Sovos Brands, the owner of the hugely popular Rao’s Homemade sauce and pasta brand, back in 2024, and took a 49% stake in La Regina — the company that manufactures Rao’s products — late in 2025. This has been a growth bright spot for Campbell’s. Rao’s recently topped $1 billion in annual net sales.

Management is well aware of the inflationary pressures it faces and the company’s overall underperformance, and is taking corrective actions to improve Campbell’s operational efficiency.

Campbell’s looks oversold in my opinion, and with the continued growth of the much-loved Rao’s brand, as well as a portfolio that includes some timeless snacks like Pepperidge Farm cookies and Goldfish crackers, Campbell’s is primed for a comeback.