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Conagra Brands (CAG) Gains But Lags Market: What You Should Know
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Conagra Brands (CAG - Free Report) closed the most recent trading day at $38.77, moving +0.31% from the previous trading session. This move lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.
Coming into today, shares of the company had gained 1.76% in the past month. In that same time, the Consumer Staples sector gained 0.4%, while the S&P 500 lost 4.4%.
Conagra Brands will be looking to display strength as it nears its next earnings release, which is expected to be January 5, 2023. In that report, analysts expect Conagra Brands to post earnings of $0.65 per share. This would mark year-over-year growth of 1.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.27 billion, up 6.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.45 per share and revenue of $12.21 billion. These totals would mark changes of +3.81% and +5.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Conagra Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.46% higher within the past month. Conagra Brands currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Conagra Brands is holding a Forward P/E ratio of 15.75. This represents a discount compared to its industry's average Forward P/E of 19.08.
Also, we should mention that CAG has a PEG ratio of 2.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Miscellaneous industry currently had an average PEG ratio of 3.18 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAG in the coming trading sessions, be sure to utilize Zacks.com.
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Conagra Brands (CAG) Gains But Lags Market: What You Should Know
Conagra Brands (CAG - Free Report) closed the most recent trading day at $38.77, moving +0.31% from the previous trading session. This move lagged the S&P 500's daily gain of 1.75%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 7.84%.
Coming into today, shares of the company had gained 1.76% in the past month. In that same time, the Consumer Staples sector gained 0.4%, while the S&P 500 lost 4.4%.
Conagra Brands will be looking to display strength as it nears its next earnings release, which is expected to be January 5, 2023. In that report, analysts expect Conagra Brands to post earnings of $0.65 per share. This would mark year-over-year growth of 1.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.27 billion, up 6.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.45 per share and revenue of $12.21 billion. These totals would mark changes of +3.81% and +5.82%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Conagra Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.46% higher within the past month. Conagra Brands currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Conagra Brands is holding a Forward P/E ratio of 15.75. This represents a discount compared to its industry's average Forward P/E of 19.08.
Also, we should mention that CAG has a PEG ratio of 2.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Miscellaneous industry currently had an average PEG ratio of 3.18 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAG in the coming trading sessions, be sure to utilize Zacks.com.