Conagra Brands (CAG) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw Conagra Brands (CAG) ending at $27.81, denoting a -0.47% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 1.56%. Meanwhile, the Dow gained 1.15%, and the Nasdaq, a tech-heavy index, added 2.05%.
Heading into today, shares of the company had gained 4.92% over the past month, outpacing the Consumer Staples sector's gain of 3.42% and the S&P 500's gain of 0.38% in that time.
The investment community will be closely monitoring the performance of Conagra Brands in its forthcoming earnings report. The company is expected to report EPS of $0.67, down 17.28% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.25 billion, reflecting a 1.88% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.68 per share and a revenue of $12.3 billion, indicating changes of -3.25% and +0.2%, respectively, from the former 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 0.08% lower. Conagra Brands is currently a Zacks Rank #4 (Sell).
Digging into valuation, Conagra Brands currently has a Forward P/E ratio of 10.44. This represents a discount compared to its industry's average Forward P/E of 16.15.
We can additionally observe that CAG currently boasts a PEG ratio of 2.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 2.29.
The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Conagra Brands (CAG) : Free Stock Analysis Report
