Conagra Brands (CAG) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw Conagra Brands (CAG) ending at $28.41, denoting a -0.25% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%.
The company's stock has dropped by 3.16% in the past month, falling short of the Consumer Staples sector's gain of 2.56% and the S&P 500's gain of 2.99%.
Investors will be eagerly watching for the performance of Conagra Brands in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.63, signifying a 17.11% drop compared to the same quarter of the previous 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.59 per share and revenue of $12.09 billion, indicating changes of -6.5% and -1.51%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Conagra Brands. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. As of now, Conagra Brands holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Conagra Brands has a Forward P/E ratio of 10.98 right now. This signifies a discount in comparison to the average Forward P/E of 17.25 for its industry.
It is also worth noting that CAG currently has a PEG ratio of 3.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 2.2.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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
