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Conagra (CAG) Looks Bearish: Should You Sell the Stock?
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On Dec 20, 2016, we issued an updated research report on premium consumer goods firm, Conagra Brands, Inc. (CAG - Free Report) .
Why Should You Avoid Conagra?
Post first-quarter fiscal 2017 earnings release (Sep 29, 2016), Conagra’s shares recorded an average negative return of 17.06% – weaker than the 0.98% negative return provided by the Zacks categorized Food-Miscellaeous Preparation/Diversified industry.
Also, the projected earnings per share growth (F1/F0) and estimated sales growth (F1/F0) for the company are currently pegged at -18.51% and -32.70%, respectively.
In order to become a high-performing flexible company, Conagra successfully divested its Lamb Weston business in Nov 2016. However, at present, profit-making prospects of the company, post spin-off, are not clear to the market. Notably, the company’s margins have always remained highly sensitive to the price changes of major raw materials, such as pork, oats, beef and wheat.
In addition, Conagra has been facing threats of business rivalry within the industry. Extensive competitive threats from peers raise the bargaining power of the company’s customers, as well as increase threats of market-share loss.
We even notice that the appreciating U.S. currency has been hurting the international revenues and profitability of Conagra, by enhancing the competitive power of the smaller rivals operating in low-cost nations.
Over the last 60 days, the Zacks Consensus Estimate for the stock has moved south for both fiscal 2017 and fiscal 2018. Therefore, market sentiments toward this Zacks Rank #5 (Strong Sell) stock are currently pessimistic.
Stocks to Consider
Better-ranked stocks in the industry include Dean Foods Company , Francesca's Holdings Corporation and Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) . All the three stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dean Foods Company has an average positive earnings surprise of 5.44% for the last four quarters.
Francesca's Holdings Corporation’s positive earnings surprise is 26.55% for the trailing four quarters.
Ollie's Bargain Outlet Holdings, Inc.’s positive earnings surprise is 17.64% for the last four quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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Conagra (CAG) Looks Bearish: Should You Sell the Stock?
On Dec 20, 2016, we issued an updated research report on premium consumer goods firm, Conagra Brands, Inc. (CAG - Free Report) .
Why Should You Avoid Conagra?
Post first-quarter fiscal 2017 earnings release (Sep 29, 2016), Conagra’s shares recorded an average negative return of 17.06% – weaker than the 0.98% negative return provided by the Zacks categorized Food-Miscellaeous Preparation/Diversified industry.
Also, the projected earnings per share growth (F1/F0) and estimated sales growth (F1/F0) for the company are currently pegged at -18.51% and -32.70%, respectively.
In order to become a high-performing flexible company, Conagra successfully divested its Lamb Weston business in Nov 2016. However, at present, profit-making prospects of the company, post spin-off, are not clear to the market. Notably, the company’s margins have always remained highly sensitive to the price changes of major raw materials, such as pork, oats, beef and wheat.
In addition, Conagra has been facing threats of business rivalry within the industry. Extensive competitive threats from peers raise the bargaining power of the company’s customers, as well as increase threats of market-share loss.
We even notice that the appreciating U.S. currency has been hurting the international revenues and profitability of Conagra, by enhancing the competitive power of the smaller rivals operating in low-cost nations.
Over the last 60 days, the Zacks Consensus Estimate for the stock has moved south for both fiscal 2017 and fiscal 2018. Therefore, market sentiments toward this Zacks Rank #5 (Strong Sell) stock are currently pessimistic.
Stocks to Consider
Better-ranked stocks in the industry include Dean Foods Company , Francesca's Holdings Corporation and Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) . All the three stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dean Foods Company has an average positive earnings surprise of 5.44% for the last four quarters.
Francesca's Holdings Corporation’s positive earnings surprise is 26.55% for the trailing four quarters.
Ollie's Bargain Outlet Holdings, Inc.’s positive earnings surprise is 17.64% for the last four quarters.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>