Jim Cramer Talked About These 16 Stocks Recently

11. The Campbell’s Company (NASDAQ:CPB)

Number of Hedge Fund Holders: 30

The Campbell’s Company (NASDAQ:CPB) was mentioned during the episode, and here’s what Cramer had to say:

“Campbell’s reported this morning, and if you listened to the call, you’d think that they must make expensive gourmet food, not some of the most basic stuff in the supermarket, because apparently high prices are scaring away their customers over and over again… I gotta say something, I’ve been very fond of Campbell’s with a good dividend, staple set of product lines, meals, and beverages, and snacks Campbell’s bought Raos, the terrific Italian sauce company, and initially, that deal bolstered sales. Oh, but get this, in a real bit of bad luck, Raos is staring down a reciprocal tariff, currently at pause, that could turn out to be an 8 to 9% headwind…

Plus, we just learned that steel and aluminum tariffs are being doubled from 25 to 50%. The classic Campbell’s Soup can is made of steel…. Well, that’s going to hurt… When you look at the weakness in snacks, things get more problematic…. Overall snack sales were down 5% on organic basis. Now, management repeatedly mentioned the economy as the main driver of the shortfall. You know what they didn’t mention once? The GLP-1 weightless drugs, the ones that make you feel full, and they tamp down all sorts of cravings, including cravings for the junk food that Campbell’s makes.

I don’t think they’re oblivious, but over and over again, the packaged fruit companies have told us that what sells better in GLP-1 world is multi-pack snacks, and that turned out to be what worked well for Campbell’s potato chips. So don’t you think there’s some similarity? Honestly, I think it’s insane to blame the economy for everything when 15 million or more Americans are taking these weight loss drugs, and to not acknowledge that younger people are much more concerned about their health than they used to be, and know better than to eat salty snacks. That seems downright naive to me…

Now, Campbell’s has a nice juicy good dividend, and that gives you a 4.5% yield, which seems safe here. Company just raised its payout by 2 cents per share in December for a quarter. Normally, I’d say they’re paying you to wait, but now I’m thinking, wait for what? For GLP-1s to go outta style, for younger people to break discipline, for cans to come down in price, for more clarity on tariffs? With the benchmark 10 Year Treasury yielding 4.5%, with a possible secular change against snacking, I don’t think there’s anything to wait for, and so I won’t wait for it. Unless you think Campbell’s will catch a takeover bid, I don’t think you should wait either.”

Campbell’s (NASDAQ:CPB) produces and sells a wide range of food and beverage items, including soups, sauces, broths, pasta, juices, frozen meals, yogurt, and an extensive lineup of snacks such as crackers, cookies, chips, and pretzels under various well-known brands.