Despite the stock market hitting record levels, there is still a great deal of discomfort about the foundation for the recovery. While there is no question that it has been liquidity based, there are many doubts about how sustainable it is with unemployment so high and economic growth so low in the United States. Times such as these make investing in comfort food stocks such as Campbells Soup Company (NYSE: CPB) and SoupMan (NASDAQ: SOUP) that much more palatable.
Campbell Soup needs no introduction as it is a global icon for comfort foods.
Neither does SoupMan when one realizes that it is a product of the legendary “Soup Nazi” episode from the hit series, “Seinfeld.” While the show and series was a classic, voted the best in history by TV Guide, SoupMan has won many awards, too. Zagat is just one example of those praising the unique offerings of SoupMan.
From the Zagat site about SoupMan, a comment from “Carla C” states succintly, “still the soup king.”
What makes stocks like SoupMan and Campbell royalty with investors is the demand for the product is increasing. The price-to-sales ratio for SoupMan has improved tremendously. On a quarterly basis, sales for Campbell’s is rising by more than 10%.
As the chart below shows, Campbell’s has been surging. The consumer demand for Campbell’s and SoupMan should continue to soar. A report by McKinsey Global Institute projects that one billion new consumers will enter the global middle class by 2025. That will bring trillions in new spending on food, according to another report from McKinsey Global Institute. As consumers become more affluent, there is a greater demand for prepared foods such as SoupMan and Campbell’s.
That should be very comforting indeed for those buying the shares of SoupMan and Campbell Soup Company!