HOBOKEN, NJ – SEPTEMBER 28: Cans of Campbell’s soup sit on a shelf in a grocery store on September … [+]
Campbell Soup (NYSE: CPB) stock has remained relatively resilient through the Coronavirus pandemic thus far, trading about 2% up since early February (as of March 13 week’s end), compared to the S&P 500 which is down by about 18%. Americans have been stockpiling non-perishable foods as they remained confined to their homes while preparing for a potential lockdown. Campbell is likely to benefit from this trend, and the company has been boosting production at certain locations. Moreover, the company’s supply chain is largely tied to the U.S. with just 10% of its products sourced from overseas and less than 2% from China. Going by the company’s performance over the 2008 crisis, it’s likely that it will continue to outperform over the 2020 crisis. That said, it’s also likely that Campbell will underperform the S&P as the broader markets recover, if we use the 2008-09 crisis as a benchmark. We have detailed trends in Campbell Soup stock compared to the S&P 500 in an interactive dashboard titled ‘2008 Crisis Vs. 2020 Coronavirus: How Did Campbell Soup Stock Fare Compared with S&P 500?’, parts of which are summarized below.
Campbell Soup Performance During 2020 Coronavirus/Oil Price War Crisis
- Campbell Soup stock is up by about 2% (as of end of week March 13) since the WHO declared a global health emergency in late January.
- Although the stock declined by about 5% since the big market sell-off that started on March 9th, as Coronavirus cases accelerated in the U.S. and Saudi Arabia launched a price war in the oil markets, the company has outperformed the S&P 500, which is down by 9% since last week and by about 19% since early February.
Campbell Soup Stock Performance Over 2007-08 Financial Crisis
- Campbell stock declined from $25.60 in October 2017, the markets approximate pre-crisis peak in 2008, to about $19.30 in March 2009, as the markets bottomed out, and rebounded to levels of around $25 in January 2010.
- The stock declined by as much as 25% between the market’s approximate pre-crisis peak in October 2017 and March 2009. This was significantly better than the broader S&P which fell by as much as 51%.
- That said, the company underperformed the S&P between March 2009 and January 2010, rising by 30% vs. 48% for the S&P.
We also compare the current coronavirus crash to 4 other market crashes here.