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Actionable news in CPB: CAMPBELL SOUP COMPANY,

Campbell Soup: In A Bubble?

Summary

Campbell Soup has a 27 PE and the highest EV/EBIT since the late 1990s. The stock is expensive.

If interest rates rise or the economy falters, the stock will fall.

I'd avoid this stock as it is already seeing market share losses and the consumer hasn't shown much weakness yet.

If you don't research stocks every day, you may look at the equity markets and assume 2016 is like the past years of the recovery where earnings would increase and stocks would follow suit. However, a closer inspection shows earnings about to decline for their 5th straight quarter. This stage of the rally ignores earnings and trades on the hope of a dovish...


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