We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Conagra Brands (CAG) in Q1 Earnings?
Read MoreHide Full Article
Conagra Brands, Inc. (CAG - Free Report) is slated to report first-quarter fiscal 2018 (ended Aug 31, 2017) results on Sep 28, before the market opens.
Over the last month, Conagra’s shares yielded a return of 2.9%, as against 2.3% loss incurred by the industry.
In fact, the company pulled off an average positive earnings surprise of 10.66% over the last four quarters. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Conagra believes its ongoing restructuring moves will likely boost its top-line performance in the quarters ahead. Moreover, launch of innovative products such as Power Bowls and new category of Alexia branded will likely help bolster sales going forward. The company anticipates to widen near-term margins on the back of ongoing volume strategy, improved pricing conditions, supply-chain productivity and divestiture of low revenues-generating businesses. Further, increased share repurchases, margin expansion and lower interest expense are likely to boost the company’s near-term earnings.
However, lower volumes, unfavorable price/mix or adverse foreign currency translation impact might continue to weigh over the company’s Grocery & Snacks, Refrigerated & Frozen, and Foodservice, and International segments’ sales in the quarters ahead. Also, we believe price inflation of major raw inputs such as as soybeans, pork, oats, beef, poultry, wheat and corn might hurt near-term margins of Conagra. In addition, intense rivalry in the industry might mar near-term top- and bottom-line performance as well.
Earnings Whispers
Our proven model does not conclusively show that Conagra will likely beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Conagra has an Earnings ESP of -3.31%. This is because the Most Accurate estimate is at 39 cents, while the Zacks Consensus Estimate is pegged higher at 40 cents.
Zacks Rank: Conagra carries a Zacks Rank #3, which when combined with a negative ESP, makes surprise prediction difficult.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are three stocks within the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Constellation Brands Inc (STZ - Free Report) currently carries a Zacks Rank #2 and has a positive earnings ESP of 0.99%.
Kellogg Company (K - Free Report) currently carries a Zacks Rank #3 and has a positive earnings ESP of 0.45%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Image: Bigstock
What's in the Cards for Conagra Brands (CAG) in Q1 Earnings?
Conagra Brands, Inc. (CAG - Free Report) is slated to report first-quarter fiscal 2018 (ended Aug 31, 2017) results on Sep 28, before the market opens.
Over the last month, Conagra’s shares yielded a return of 2.9%, as against 2.3% loss incurred by the industry.
In fact, the company pulled off an average positive earnings surprise of 10.66% over the last four quarters. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Conagra believes its ongoing restructuring moves will likely boost its top-line performance in the quarters ahead. Moreover, launch of innovative products such as Power Bowls and new category of Alexia branded will likely help bolster sales going forward. The company anticipates to widen near-term margins on the back of ongoing volume strategy, improved pricing conditions, supply-chain productivity and divestiture of low revenues-generating businesses. Further, increased share repurchases, margin expansion and lower interest expense are likely to boost the company’s near-term earnings.
However, lower volumes, unfavorable price/mix or adverse foreign currency translation impact might continue to weigh over the company’s Grocery & Snacks, Refrigerated & Frozen, and Foodservice, and International segments’ sales in the quarters ahead. Also, we believe price inflation of major raw inputs such as as soybeans, pork, oats, beef, poultry, wheat and corn might hurt near-term margins of Conagra. In addition, intense rivalry in the industry might mar near-term top- and bottom-line performance as well.
Earnings Whispers
Our proven model does not conclusively show that Conagra will likely beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Conagra has an Earnings ESP of -3.31%. This is because the Most Accurate estimate is at 39 cents, while the Zacks Consensus Estimate is pegged higher at 40 cents.
ConAgra Foods Inc. Price and EPS Surprise
ConAgra Foods Inc. Price and EPS Surprise | ConAgra Foods Inc. Quote
Zacks Rank: Conagra carries a Zacks Rank #3, which when combined with a negative ESP, makes surprise prediction difficult.
It should be noted that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are three stocks within the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) presently hold a Zacks Rank #2 and has a positive earnings ESP of 0.49%. You can see the complete list of today’s Zacks Rank #1(Strong Buy) Rank stocks here.
Constellation Brands Inc (STZ - Free Report) currently carries a Zacks Rank #2 and has a positive earnings ESP of 0.99%.
Kellogg Company (K - Free Report) currently carries a Zacks Rank #3 and has a positive earnings ESP of 0.45%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>