The three major U.S. equity indexes closed lower Friday. The Nasdaq dropped 2.5%, the S&P 500 slipped by 1.6% and the Dow Jones industrials dipped by just over 1%. Crude oil has added about $7 a barrel since last Thursday morning and traded at around $119.50 early Monday morning. The Saudis have raised their contract prices to Asian customers, just as China begins relaxing its coronavirus-related lockdowns. That is expected to push demand, and prices, even higher. Consumer price index (CPI) data is due out Friday, along with the University of Michigan’s report on consumer sentiment.
After markets close Monday or before they open on Tuesday, Academy Sports, Coupa Software, GitLab and Hello Group are scheduled to report results.
Here is a look at two firms scheduled to release quarterly results first thing Wednesday morning.
Over the past 12 months, shares of Campbell Soup Co. (NYSE: CPB) have slipped by about 4.8%, while the consumer staples sector has gained about 6.8%. For the year to date, Campbell Soup has added about 7%, while the S&P 500 has declined by nearly 14%. On top of that, the maker of a variety of consumer food products also pays a solid dividend yield.
Analysts are neither hot nor cold on the shares. Of 20 brokerages covering the company, 13 have a Hold rating and five have rated the stock a Sell or Strong Sell. At a recent share price of around $45.70, the stock traded near its median price target of $46.00. At the high price target of $51.00, the upside potential is about 11.6%.
For the company’s third quarter of fiscal 2022, the consensus revenue estimate is $2.04 billion, which would be down 7.7% sequentially but by 3% higher year over year. Adjusted earnings per share (EPS) are forecast at $0.61, down 11.1% sequentially and up 7.0% year over year. For the fiscal year ending in July, current estimates call for EPS of $2.78, down 6.9%, on sales of $8.42 billion, down by less than 0.7%.
Campbell Soup stock trades at 16.4 times expected 2022 EPS, 15.9 times estimated 2023 earnings of $2.87 and 15.2 times estimated 2024 earnings of $3.00 per share. The stock’s 52-week range is $39.76 to $51.94. The company pays an annual dividend of $1.48 (yield of 3.24%). Total shareholder return for the past year was negative 4.3%.
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From a pandemic low in March of 2020, shares of recreational vehicle maker Thor Industries Inc. (NYSE: THO) rose by 350% over the next 12 months. Since then, shares declined by 50% late last month to a 52-week low. Demand for RVs has declined, due in part to rising fuel costs and in part to price increases of 60% to 70% compared to pre-pandemic prices. Rival RV builder Winnebago has not fared much better and is scheduled to report quarterly results next week. In addition to its namesake brand, Thor Industries also manufactures Airstream, Jayco and more than a dozen other RV brands.
Of 13 brokerages covering the company, six have a Hold rating and four rate the stock at Buy or Strong Buy. At a share price of around $74.30, the upside potential based on a median price target of $92.00 is 23.8%. At the high price target of $155.00, the upside potential is about 108.6%.
For the company’s third quarter of fiscal 2022, the consensus revenue estimate is $4.18 billion. That would be up 7.8% sequentially and by 20.8% year over year. Adjusted EPS are forecast at $4.79, flat sequentially but 45.6% higher year over year. For the fiscal year ending in July, current estimates call for EPS of $18.05, up 52.4%, on sales of $15.98 billion, up nearly 30%.
Thor Industries stock trades at 4.1 times expected 2022 EPS, 6.4 times estimated 2023 earnings of $11.58 and 7.1 times estimated 2024 earnings of $10.41 per share. The stock’s 52-week range is $66.26 to $128.87. The company pays an annual dividend of $1.68 (yield of 2.31%). Total shareholder return for the past year was negative 35.6%.
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