Conagra Brands (CAG) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Conagra Brands (CAG) closed at $28.10, marking a -0.92% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.24%.
Prior to today's trading, shares of the company had lost 2.98% over the past month. This has lagged the Consumer Staples sector's gain of 1.53% and the S&P 500's gain of 6.45% in that time.
Market participants will be closely following the financial results of Conagra Brands in its upcoming release. The company is predicted to post an EPS of $0.63, indicating a 17.11% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.02 billion, down 2.3% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.59 per share and a revenue of $12.09 billion, signifying shifts of -6.5% and -1.51%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Conagra Brands. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Conagra Brands is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Conagra Brands's current valuation metrics, including its Forward P/E ratio of 10.94. This valuation marks a discount compared to its industry's average Forward P/E of 17.03.
Investors should also note that CAG has a PEG ratio of 3.01 right now. 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. As the market closed yesterday, the Food - Miscellaneous industry was having an average PEG ratio of 2.39.
The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 115, placing it within the top 46% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Conagra Brands (CAG) : Free Stock Analysis Report
