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Jim Cramer Says “Only Consolidation” Can Save Food Stocks Like Campbell’s
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The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. The Campbell’s Company (NASDAQ:CPB) was among the stocks Jim Cramer discussed on Mad Money, along with the recent sell-off in the market. Cramer highlighted the stock’s performance during the episode and commented: The food stocks have been unbearable. I mean, they’re just disastrous. Campbell’s reports on Monday, and here’s a stock that’s down 22% for the year. 7.2% yield. The sky-high dividend yield, though, is really a sign that people believe Campbell’s can’t cover its payout. I don’t know if that’s true, but I do know this: If someone doesn’t consolidate this whole packaged food industry, we’re going to have a whole bunch of low-dollar amount stocks that aren’t worth owning because they won’t be able to pay their dividends. No growth, often unhealthy, in the cross hairs of GLP-1s, no pricing power, that’s almost every food stock out there. Only consolidation can save them. The Campbell’s Company (NASDAQ:CPB) produces and sells soups, broths, sauces, juices, frozen meals, and beverages. In addition, it offers a wide range of snacks. On June 8, the company reported non-GAAP EPS of $0.50, outperforming estimates by $0.02, and revenue of $2.4 billion, beating estimates by $20 million but was down 3.2% year-over-year. While we acknowledge the potential of CPB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.
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