In his first "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke with Mark Clouse, president and CEO of Campbell Soup Co. (CPB) , the packaged foods maker with shares off 12% over the past month as investors questioned whether the pantry-stocking trend would continue.
Clouse said that consumers are getting comfortable with their new normal and that includes cooking more at home with Campbell's products. He said their brands have seen elevated levels of relevance and they're hard at work adding capacity and reallocating resources to meet demand as we enter the winter soup season.
Clouse added that Campbell is attracting a whole new generation of consumers, with over 50% of sales stemming from younger, millennial consumers.
Campbell is also riding the snacking wave as their snack food segment now accounts for half of revenue and has only accelerated through the pandemic.
Let's check out the charts and then have a morning snack.
We last looked at the charts of CPB on Sept. 2 ahead of earnings and wrote that, "The upcoming earnings release will have to surprise on the upside to keep CPB moving higher. The charts of CPB are not bearish, they are just not inspiring." Prices turned lower quickly and now we need a new technical strategy.
In the daily bar chart of CPB, below, we can see that the shares are now trading below the declining 50-day moving average line and the declining 200-day moving average line. Trading volume increased this month as prices declined telling us that traders are voting with their feet. The On-Balance-Volume (OBV) line has turned lower and that too tells us that sellers of CPB have become more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator crossed below the zero line last week for an outright sell signal.