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Will Conagra's Focus on Innovation Continue to Fuel Stock?

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Conagra Brands, Inc. (CAG - Free Report) is focused on making innovation in its portfolio. In line with this, the company will launch a variety of on-trend items from several emerging and popular brands. The company focuses on efficiently catering to consumers’ demand to speed up growth. Notably, these items fall under Conagra’s Frozen & Refrigerated Meals, Condiments & Enhancers, Snacks & Sweet Treats, and Shelf Stable Meals & Sides categories.

The launch of these snacking and grocery items from iconic brands is likely to augment the company’s robust snacking business. Well, Conagra has long been undertaking initiatives to boost the frozen and snacking businesses. The company is on track to come up with a wide range of innovation and brand-building efforts for exploring growth prospects in these areas.

Conagra Boosts Portfolio

Conagra, which shares space with General Mills (GIS - Free Report) , has several launches lined up for the first half of fiscal 2020 from the frozen category. It is also on track with innovation in the snacking business, which includes meat snacks, with bold flavors and optimized packaging. Further, the company is launching salty snacks in new markets and reframing the sweet treats brands. Such efforts are likely to yield positive results in the forthcoming periods.

Earlier, Conagra acquired Pinnacle Foods, given the rising demand for frozen foods and snacks. The consolidation of these food companies has created a robust portfolio of leading, iconic and on-trend brands. Further, the move is aiding the introduction of several products and exploiting the long-term benefits of the frozen foods space.

Notably, the buyout boosted Conagra’s fourth-quarter fiscal 2019 net sales, which jumped 32.9% year over year, and will likely keep doing the same marching ahead.

These factors along with well-chalked initiatives to reshape the portfolio have been driving this Zacks Rank #3 (Hold) stock, which has gained 31.4% in the past six months compared with the industry's growth of 11.7%.

Looking for Food Stocks? Check These

MEDIFAST (MED - Free Report) , with a Zacks Rank #2 (Buy), delivered positive earnings surprise in the trailing three quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

J&J Snack Foods (JJSF - Free Report) , also with a Zacks Rank #2, has an impressive earnings surprise record.

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