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Campbell Soup (CPB) is the perfect stock for this market.

The first thing I want to make clear is that CPB is more than just soup. CPB owns some sexier food brands like Goldfish, Pepperidge Farms, and Kettle Brands in its Snacks division, for example.

CPB reported 2QFY22 earnings Wednesday morning. Organic sales were -2% and gross margin got hit by supply chain issues and commodity inflation, coming in at 30.4%.

Nevertheless, CPB reaffirmed its full-year guidance as it expects the second half of its fiscal year to be stronger than the first. A couple of reasons for the company’s optimism is that higher pricing is in place and it’s lapping easy comps from the beginning of 2021 when the economy reopened and people started eating out more. This is why not only is CPB the perfect stock for this market but now represents a nice entry.

CPB guided FY22 organic sales to -1% to 1% and EPS to $2.75-$2.85. At a current $42, that’s a 15x P/E multiple on current year earnings. You won’t find better value in this market. Throw in a 3.5% dividend to boot.

CPB is the definition of boring – except for the fact that it’s going higher.

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Related article by this author: JM Smuckers: Boring Is Beautiful