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Conagra Brands (CAG) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Conagra Brands (CAG - Free Report) closed at $29.04, marking a -0.21% move from the previous day. This change lagged the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.

Heading into today, shares of the company had lost 6.97% over the past month, lagging the Consumer Staples sector's loss of 3.7% and the S&P 500's loss of 0.73% in that time.

Conagra Brands will be looking to display strength as it nears its next earnings release, which is expected to be October 5, 2023. The company is expected to report EPS of $0.60, up 5.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.95 billion, up 1.57% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.72 per share and revenue of $12.39 billion. These totals would mark changes of -1.81% and +0.9%, respectively, from last year.

Any recent changes to analyst estimates for Conagra Brands should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Conagra Brands is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Conagra Brands currently has a Forward P/E ratio of 10.69. Its industry sports an average Forward P/E of 15.78, so we one might conclude that Conagra Brands is trading at a discount comparatively.

We can also see that CAG currently has a PEG ratio of 2.92. 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 2.45 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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