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Conagra Brands (CAG) Stock Moves -0.14%: What You Should Know

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Conagra Brands (CAG - Free Report) closed at $36.36 in the latest trading session, marking a -0.14% move from the prior day. This move was narrower than the S&P 500's daily loss of 2%. At the same time, the Dow lost 2.06%, and the tech-heavy Nasdaq lost 2.32%.

Heading into today, shares of the company had lost 2.73% over the past month, lagging the Consumer Staples sector's gain of 0.32% and the S&P 500's gain of 2.88% in that time.

Conagra Brands will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.64, up 10.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.09 billion, up 5.98% from the year-ago period.

CAG's full-year Zacks Consensus Estimates are calling for earnings of $2.66 per share and revenue of $12.37 billion. These results would represent year-over-year changes of +12.71% and +7.2%, respectively.

Investors should also note any recent changes to analyst estimates for Conagra Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Conagra Brands is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Conagra Brands is currently trading at a Forward P/E ratio of 13.68. Its industry sports an average Forward P/E of 18.05, so we one might conclude that Conagra Brands is trading at a discount comparatively.

Investors should also note that CAG has a PEG ratio of 1.95 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous industry currently had an average PEG ratio of 2.88 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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