Conagra Brands (CAG) Stock Drops Despite Market Gains: Important Facts to Note
Conagra Brands (CAG) closed at $29.46 in the latest trading session, marking a -0.2% move from the prior day. This change lagged the S&P 500's 0.39% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.2%.
Shares of the company witnessed a gain of 6.15% over the previous month, beating the performance of the Consumer Staples sector with its gain of 1.75% and the S&P 500's gain of 5.28%.
Market participants will be closely following the financial results of Conagra Brands in its upcoming release. The company plans to announce its earnings on January 4, 2024. It is anticipated that the company will report an EPS of $0.67, marking a 17.28% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.25 billion, indicating a 1.88% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.68 per share and revenue of $12.3 billion, which would represent changes of -3.25% and +0.2%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Conagra Brands. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Conagra Brands holds a Zacks Rank of #4 (Sell).
In terms of valuation, Conagra Brands is currently trading at a Forward P/E ratio of 11.03. This signifies a discount in comparison to the average Forward P/E of 17.07 for its industry.
Also, we should mention that CAG has a PEG ratio of 2.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CAG's industry had an average PEG ratio of 2.42 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 45% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Conagra Brands (CAG) : Free Stock Analysis Report
