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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 $27.54, marking a -1.68% move from the previous day. This change lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.

Heading into today, shares of the company had lost 7.5% over the past month, lagging the Consumer Staples sector's loss of 4.83% and the S&P 500's loss of 2.86% in that time.

Wall Street will be looking for positivity from Conagra Brands as it approaches its next earnings report date. This is expected to be October 5, 2023. In that report, analysts expect Conagra Brands to post earnings of $0.60 per share. This would mark year-over-year growth of 5.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.95 billion, up 1.69% from the year-ago period.

CAG's full-year Zacks Consensus Estimates are calling for earnings of $2.71 per share and revenue of $12.39 billion. These results would represent year-over-year changes of -2.17% and +1.44%, respectively.

It is also important to note the recent changes to analyst estimates for Conagra Brands. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. Conagra Brands is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Conagra Brands is holding a Forward P/E ratio of 10.32. Its industry sports an average Forward P/E of 15.3, 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 3.26 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.54 based on yesterday's closing prices.

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 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.

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


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