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Conagra Brands (CAG) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Conagra Brands (CAG - Free Report) closed at $28.22, marking a +0.11% move from the previous day. This move outpaced the S&P 500's daily gain of 0.1%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.29%.

The the stock of company has risen by 3.53% in the past month, lagging the Consumer Staples sector's gain of 6.68% and the S&P 500's gain of 10.68%.

The investment community will be paying close attention to the earnings performance of Conagra Brands in its upcoming release. The company's earnings per share (EPS) are projected to be $0.67, reflecting a 17.28% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.25 billion, down 1.88% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.68 per share and a revenue of $12.3 billion, signifying shifts of -3.25% and +0.2%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Conagra Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Conagra Brands holds a Zacks Rank of #4 (Sell).

Looking at its valuation, Conagra Brands is holding a Forward P/E ratio of 10.53. This denotes a discount relative to the industry's average Forward P/E of 16.6.

We can also see that CAG currently has a PEG ratio of 2.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Food - Miscellaneous industry currently had an average PEG ratio of 2.42 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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