Conagra Brands (CAG) closed at $29.03 in the latest trading session, marking a +0.38% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.64%. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Heading into today, shares of the company had lost 2.33% over the past month, lagging the Consumer Staples sector's loss of 1.32% and the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from Conagra Brands as it approaches its next earnings release, which is expected to be October 5, 2023. On that day, Conagra Brands is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 5.26%. Meanwhile, our latest consensus estimate is calling for revenue of $2.95 billion, up 1.64% from the prior-year quarter.
CAG's full-year Zacks Consensus Estimates are calling for earnings of $2.71 per share and revenue of $12.38 billion. These results would represent year-over-year changes of -2.17% and +1.4%, respectively.
Investors should also note any recent changes to analyst estimates for Conagra Brands. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% lower. Conagra Brands is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Conagra Brands is holding a Forward P/E ratio of 10.66. This represents a discount compared to its industry's average Forward P/E of 15.97.
We can also see that CAG currently has a PEG ratio of 3.01. 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. The Food - Miscellaneous was holding an average PEG ratio of 2.53 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow CAG in the coming trading sessions, be sure to utilize Zacks.com.
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