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Conagra Brands (CAG) Stock Drops Despite Market Gains: Important Facts to Note

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The latest trading session saw Conagra Brands (CAG - Free Report) ending at $28.84, denoting a -0.07% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.89%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.

The the stock of company has risen by 1.33% in the past month, lagging the Consumer Staples sector's gain of 2.54% and the S&P 500's gain of 3.56%.

Investors will be eagerly watching for the performance of Conagra Brands in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 4, 2024. The company's upcoming EPS is projected at $0.63, signifying a 17.11% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.02 billion, down 2.3% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.59 per share and revenue of $12.09 billion. These totals would mark changes of -6.5% and -1.51%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Conagra Brands. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Conagra Brands holds a Zacks Rank of #4 (Sell).

From a valuation perspective, Conagra Brands is currently exchanging hands at a Forward P/E ratio of 11.13. This expresses a discount compared to the average Forward P/E of 17.47 of its industry.

Also, we should mention that CAG has a PEG ratio of 3.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Food - Miscellaneous was holding an average PEG ratio of 2 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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