Risk-off trading in the general market sent investors back into packaged food stocks again with anxiety over high interest rates and a potential recession in the U.S. setting a cautious tone.
Campbell Soup ( NYSE: CPB ) led the pack on Wednesday afternoon trading with a gain of 5.66% following a solid earnings beat - while BRF S.A. ( BRFS ) +3.85% , Westrock Coffee ( WEST ) +1.99% , Utz Brands ( UTZ ) +1.85% , Conagra Brands ( CAG ) +1.77% , Nomad Foods ( NOMD ) +1.72% , General Mills ( GIS ) +1.70% , J.M. Smucker ( SJM ) +1.45% , and Flower Foods ( FLO ) +1.30% all showed gains as well.
The read-through from Campbell Soup ( CPB ) is that inflation costs can be passed on to consumers.
"We continue to see a favorable net pricing benefit with dollar consumption up 5%, partially offset by pricing-related volume declines," noted Campbell Soup ( CPB ) CEO Mark Clouse on the earnings call ( read the transcript ).
The Invesco Dynamic Food & Beverage ETF ( NYSEARCA: PBJ ) has outperformed the S&P 500 Index in 2022 by a wide margin.
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Campbell Soup and food peers outperform as investors look to inflation, recession hedges