<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Watching Campbell's drift toward the edge of the S&amp;P 500 is a reminder that investors can’t rely on history or brand strength alone. </li><li>Cases like Lamb Weston show that these declines unfold slowly. </li><li>The real mistake isn’t missing the signal -- it’s ignoring it and holding on too long.</li><li>10 stocks we like better than Campbell's ›</li></ul>Last month, Lamb Weston (NYSE: LW) became a cautionary tale. On March 22, 2026, the potato products manufacturer was removed from the S&amp;P 500 and moved to the S&amp;P SmallCap 600, a demotion driven by years of stock declines, soft restaurant traffic, and a market capitalization that no longer belonged in the same room as the index's other 499 members. It was a slow-motion fall that investors could see coming.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg1ODY3Mi9nZXR0eWltYWdlcy0xNDQ5NTMzNDA3LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg1ODY3Mi9nZXR0eWltYWdlcy0xNDQ5NTMzNDA3LmpwZyZ3PTcwMA"/>Image source: Getty Images.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue » That's how these things go. S&amp;P 500 demotions rarely happen overnight. They happen after months of guidance cuts, volume pressure, and share price erosion that quietly pull a company below the floor.The Lamb Weston story matters not because of what it means for Lamb Weston, but because another S&amp;P 500 consumer name is tracking a disturbingly similar path right now.<h2>Campbell's has been in the S&amp;P 500 since 1957. That streak is in danger</h2>Campbell's (NASDAQ: CPB) joined the S&amp;P 500 at its founding in 1957, one of roughly 50 original members still on the index today. That kind of longevity feels permanent right up until the moment it isn't. In March, Campbell's reported fiscal second-quarter 2026 adjusted earnings per share (EPS) of $0.51, missing the $0.57 estimate by 11%, while net sales dropped 5% to $2.56 billion. Management cut full-year guidance to adjusted EPS of $2.15 to $2.25 -- down from as high as $2.55 at the start of the fiscal year -- and projected organic net sales to decline 1% to 2%. Tariff exposure is compressing gross margins by an estimated 230 basis points.The snacks division, which Campbell's acquired Sovos Brands a couple of years ago to build out, is struggling. Snacks' operating earnings fell to $67 million on $914 million in revenue, a 7.3% operating margin that is well below what the company needs to justify that acquisition.The stock price has fallen more than 40% over the past 12 months, putting its market cap at roughly $6.9 billion, the second-lowest in the S&amp;P 500. For context, four companies were removed from the S&amp;P 500 in the same rebalance that added new members just weeks before Campbell's guidance cut, specifically because they ranked among the index's smallest constituents.Campbell's is now in that conversation. A company that has paid a dividend every year since 1902 doesn't need to be loved by investors to stay in the index, but it does need to stop shrinking. Its brand portfolio -- including Goldfish, Pepperidge Farm, Prego, V8, and Pacific Foods -- is genuinely valuable. The question is whether management can stabilize the business quickly enough to stop market-cap erosion before the index committee runs out of patience. There is no obvious near-term catalyst on the horizon.Be wary -- with Campbell's shrinking in size and momentum, its decades-long spot in the S&amp;P 500 is no longer guaranteed.<h2>Should you buy stock in Campbell's right now?</h2> Before you buy stock in Campbell's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Campbell's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,066!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,087,496!* Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 185% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 6, 2026. Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool recommends Campbell's. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

ESIX

Lamb Weston was recently demoted from the S&P 500 to the S&P SmallCap 600 due to declining stock performance and market capitalization. Campbell's, a long-standing S&P 500 member since 1957, is facing similar challenges, with a recent earnings miss and lowered guidance. Its stock has dropped over 40% in the past year, raising concerns about its future in the index. Analysts suggest caution for investors considering Campbell's stock, as it may not be a favorable investment compared to other options.

- Campbell's is at risk of being removed from the S&P 500 after reporting a 5% sales decline and missing earnings estimates for Q2 2026.  
- The company has experienced a 40% drop in stock price over the past year, with management cutting earnings guidance and struggling in its snacks division.  
- As its market capitalization shrinks, investors are cautioned to monitor Campbell's situation closely, as its long-standing presence in the index may be jeopardized.

Be Wary of This S&P 500 Stock After Lamb Weston's Surprise Index Drop