Today’s Research Reports on Stocks to Watch: Campbell Soup and Netflix

NEW YORK, NY / ACESSWIRE / June 26, 2018 / It was a day of losses for many tech stocks including Netflix on Monday as the market grew nervous over new rules for Chinese investment and exports and a research note from Bernstein Research worried Wall Street that tech stocks may have become overpriced. Campbell Soup Company saw its shares rise after reports surfaced that rival Kraft Heinz may want to purchase the company.

RDI Initiates Coverage on:

Campbell Soup Company
https://rdinvesting.com/news/?ticker=CPB

Netflix, Inc.
https://rdinvesting.com/news/?ticker=NFLX

Campbell Soup Company shares closed up 9.40% yesterday on about 28.6 million shares traded. The soup maker saw its shares explode after reports revealed that Kraft Heinz may be interested in buying the company. It was on Friday that the New York Post reported that Kraft is “very much interested in buying Campbell.” The Post report also said the sales process is believed to be imminent. Analysts at JPMorgan are skeptical that the sale will happen while analysts led by Ken Goldman wrote, “We would be surprised if Kraft Heinz wanted Campbell Soup, a company that does not solve Kraft Heinz’s growth problems and is facing numerous internal challenges. So we do not expect a deal to take place. But in the end, money talks.” Stifel analysts led by Christopher Growe chimed in as well and said, “[W]e continue to believe Kraft Heinz will favor large-scale, global companies for its acquisition pursuits with brands that can travel around the world, with growing categories, and with significant synergies. Campbell Soup no doubt brings significant synergies to Kraft Heinz, we do not believe it has the international presence and growing categories necessary to justify an acquisition by the company.”

Access RDI’s Campbell Soup Company Research Report at:
https://rdinvesting.com/news/?ticker=CPB

Netflix, Inc. shares closed down 6.47% on about 22 million shares yesterday. The streaming giant saw its worst trading day in two years on Monday after traders showed concern over reports that there are new efforts to block Chinese investment in and sales to U.S. tech firms. Netflix, among other tech stocks like Twitter, Facebook, Google, and Square, were trading in the red as Wall Street reacted. A research note also created worry over tech stocks having become overpriced. Toni Sacconaghi of Bernstein Research wrote in a note on Monday, “While tech’s year-to-date outperformance was still disproportionately driven by the sector’s 10 largest stocks, these names actually saw their earnings multiples shrink on average — in other words, it was primarily non-FANG stocks that became more expensive.” According to the analyst, the tech sector now has a price-to-future-earnings ratio 1.18 times higher than the cap-weighted average, making it “the most expensive sector in the market.”

Access RDI’s Netflix, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=NFLX

Our Actionable Research on Campbell Soup Company (NYSE: CPB) and Netflix, Inc. (NASDAQ: NFLX) can be downloaded free of charge at Research Driven Investing.

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