Today, we are highlighting the Campbell Soup Company (CPB) to illustrate the importance of maintaining high relative strength positions within portfolios, both at the sector and stock level. In the case of CPB, we find it positioned within an unfavored SIA sector, the Food and Beverage sector, where many of the companies exhibit low SIA relative strength readings. For CPB specifically, the performance data reveals a 1-month performance of -10.28%, a 3-month performance of -18.50%, and a 1-year performance of -13.59%. This is in contrast to the benchmark performance of the iShares Core S&P 500 ETF (IVV), which shows a 1-month performance of +1.68%, a 3-month performance of +5.97%, and a 1-year performance of +23.43%. In other words, owning CPB over the past year resulted in an opportunity cost of +37.02% compared to the performance of the benchmark. Currently, shares of CPB are deep within the SIA Unfavored zone of the SIA S&P 500 Index Report, ranked at position #472. This reflects a decline of 88 positions over the past quarter alone. In the attached point-and-figure chart, we can observe CPB's red "unfavored" position via the SIA matrix chart. The shares have been locked in a narrow consolidation range since 2020, trading between approximately $35 on the low side and $50 on the upper side. Currently, CPB appears to be nearing its support at $34.91, with additional support visible on the chart at $33.56. To the upside, resistance is found at the $40.91 level, dating back to 2017, with further resistance at $44.28.
The Food and Beverage sector lacks relative strength as an area of opportunity within the SIA Sector Report. CPB itself has a negative SMAX score of 0/10, which further highlights its weak relative strength compared to other asset classes such as cash, bonds, commodities, currencies, and international equity indexes. The next attachment is a table showing all the stocks currently in the SIA Food and Beverage Sector Report. From this, we can observe that only a few names are classified as outperformers. For example, Sprouts Farmers Market Inc. (SFM) leads the pack with an impressive 222.29% return over the past year. However, aside from the top few names, most of the stocks in the sector have exhibited negative 1-year returns, and this negative trend has extended into 2025, with monthly numbers showing consistent declines throughout the report.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
