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I’m sure we all remember a stock that at one time was a rock star that could do no wrong. Every day it went up. Every earnings report it beat. And every time you ran into Cousin Ira he’d tell you about how big of a winner it was, even though you know that that piker only bought five shares. 

Well the story stock of yesteryear, Keurig Green Mountain (GMCR) is back in the news. Keurig and Campbell’s Soup (CPB) have announced they are partnering up to produce single-serve Fresh-Brewed Soup in K-Cup pods. The 70-calorie servings will be available in Homestyle and Southwest Style Chicken Noodle. As a result, tea pots and kettles everywhere are shivering in fear. 

Keurig is hoping sales of the pods will help fix slumping revenues and declining earnings estimates. Over the last sixty days, ten analysts have revised their current year forecasts to the downside, dropping consensus from $3.69 to $3.42. Keurig is also hoping everyone forgets how to boil water and will pay money for a machine to do a job that every coffee maker in every office in America already does for free. 
I wanna play. I’m gonna start charging ridiculous amounts of money for stuff that should be dirt cheap. Oh, you want a wet nap? Thirty five dollars. Cue tip? Nine ninety five. Ramen Noodles? I’m gonna put them in a fancy cup and charge you ten times what they normally cost. That’ll be sixty-three cents. That’s right, still cheap. 

The winner here is clearly Zacks Rank #2 (Buy) Campbell’s Soup. In the last week alone, four analysts revised their earnings estimates to the upside for the current year, boosting consensus from $2.49 to $2.58. 

If you take a look at the chart, you’ll see Campbell’s has been on a good run for most of this year. When the market went South at the end of August, Campbell’s followed suit. Shares dropped to nearly $45 but have since recovered nicely as volume has increased. Sitting at the 21-day moving average just below $50 I’m hoping it can break higher as long as the market cooperates. 

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KEURIG GREEN MT (GMCR): Free Stock Analysis Report
 
CAMPBELL SOUP (CPB): Free Stock Analysis Report
 
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