Conagra Brands (CAG) Outperforms Broader Market: What You Need to Know
Conagra Brands (CAG) closed the most recent trading day at $27.17, moving +1.65% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 0.3%.
The company's shares have seen a decrease of 7.54% over the last month, not keeping up with the Consumer Staples sector's gain of 0.32% and the S&P 500's gain of 4.61%.
Investors will be eagerly watching for the performance of Conagra Brands in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.63, showcasing a 17.11% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.02 billion, showing a 2.3% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.59 per share and a revenue of $12.09 billion, demonstrating changes of -6.5% and -1.51%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Conagra Brands. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Conagra Brands is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Conagra Brands has a Forward P/E ratio of 10.31 right now. This indicates a discount in contrast to its industry's Forward P/E of 17.19.
One should further note that CAG currently holds a PEG ratio of 2.84. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 2.28.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% 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.
To follow CAG in the coming trading sessions, be sure to utilize Zacks.com.
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Conagra Brands (CAG) : Free Stock Analysis Report
