Now is the Perfect Time to Buy Campbell Soup Stock

view original post

CPB’s short interest continues to be on the rise

Schaeffer’s Investment Research was built from scratch on Bernie Schaeffer’s vision of providing accessible professional-grade trading information to retail traders. This remains our mission today, 41 years later. To access the entirety of the Schaeffer’s 41st Anniversary Stock Picks report, click here.

Shares of Campbell Soup Company (NYSE:CPB) are up 10% year-to-date, easily beating the broader market’s performance. CPB recently pulled back to its 1,000-day moving average, bounced, and Campbell Soup stock is now above a trendline connecting lower highs on a daily chart. On a monthly chart, CPB is above a trendline connecting lower highs since early 2020, with recent lows at this trendline around the $45 area. Campbell Soup stock gapped higher on June 8 after earnings, but has pulled back and now sits above its earnings day close.

Currently, a slew of analysts sport pessimistic outlooks on Campbell Soup stock, leaving ample room for upgrades moving forward. Specifically, all 11 covering brokerages recommend a tepid “hold” or worse rating. Short interest has been on the rise, up 16.6% since mid-October. This accounts for 8.5% of CPB’s available float, or over six days’ worth of pent-up buying power. 

Rocky White is a Senior Quantitative Analyst for Schaeffer’s Investment Research. With nearly 14 years of experience in the financial services industry, White runs the quantitative analysis team at Schaeffer’s. Rocky holds a master’s degree in financial engineering and his research is widely quoted on major media outlets like Bloomberg TV, CNBC, and Fox Business News.