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T Rowe Price Buys Conagra, Adds to CVS

- By Tiziano Frateschi

The T Rowe Price Equity Income Fund (Trades, Portfolio) bought shares of the following stocks during the first quarter.


The fund acquired a new position in Conagra Brands Inc. (CAG), buying 7,540,000 shares. The trade had an impact of 1.11% on the portfolio.

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The company, which manufactures branded consumer foods and snacks, has a market cap of $15.01 billion and an enterprise value of $25.93 billion.


GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 12.08% and return on assets of 4.03% are outperforming 65% of companies in the Packaged Foods industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.03 is above the industry median of 0.49.

The company's largest guru shareholder is Jana Partners (Trades, Portfolio) with 2.79% of outstanding shares, followed by T Rowe Price with 1.55%, Mario Gabelli (Trades, Portfolio) with 0.29% and George Soros (Trades, Portfolio) with 0.23%.

The fund gained a new 3.39 million-share position in Fox Corp. (FOX), impacting the portfolio by 0.75%.

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The broadcasting company has a market cap of $23.50 billion and an enterprise value of $21.56 billion.


GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 23.44% and return on assets of 18.21% are outperforming 100% of companies in the Broadcasting - TV industry. Its financial strength is rated 8 out of 10 with no debt.


The company's largest guru shareholder is T Rowe Price with 0.63% of outstanding shares, followed by the Yacktman Focused Fund (Trades, Portfolio) with 0.44% and the Yacktman Fund (Trades, Portfolio) with 0.43%.


T Rowe Price bought 825,000 shares of Pioneer Natural Resources Co. (PXD), impacting the portfolio by 0.67%.

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The exploration and production company has a market cap of $29.61 billion and an enterprise value of $30.45 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 10.40% and return on assets of 6.95% are outperforming 74% of companies in the Oil and Gas E&P industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.63 is above the industry median of 0.51.

The company's largest guru shareholder is Seth Klarman (Trades, Portfolio) with 2.67% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.93%.

The fund added 38.91% to its CVS Health Corp. (CVS) stake, impacting the portfolio by 0.31%.

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The drugstore chain has a market cap of $68.76 billion and an enterprise value of $135.93 billion.


GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity of -1.44% and return on assets of -0.43% are outperforming 62% of companies in the Health Care Plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.09 is below the industry median of 1.15.


The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 1.48% of outstanding shares, followed by Dodge & Cox with 1.24% and the Vanguard Health Care Fund (Trades, Portfolio) with 0.91%.

The fund boosted the Weyerhaeuser Co. (WY) holding by 39.55%, impacting the portfolio by 0.27%.

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The forest products provider has a market cap of $19.32 billion and an enterprise value of $25.38 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. While the return on equity of 8.26% is underperforming the sector, the return on assets of 4.22% is outperforming 53% of companies in the Lumber and Wood Production industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.37.

The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 5.80% of outstanding shares, followed by Third Avenue Management (Trades, Portfolio) with 0.64% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.35%.

The fund added 6.34% to its Wells Fargo & Co. (WFC) position, impacting the portfolio by 0.21%.

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The bank has a market cap of $213.64 billion and an enterprise value of $36.96 billion.


GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 10.70% and return on assets of 1.22% are outperforming 54% of companies in the Banks - Global industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.43 is below the industry median of 1.43.


The company's largest guru shareholder is Warren Buffett (Trades, Portfolio) with 9.38% of outstanding shares, followed by Dodge & Cox with 1.76% and PRIMECAP Management (Trades, Portfolio) with 1.0%.

T Rowe Price established a position in Zimmer Biomet Holdings Inc. (ZBH), buying 275,000 shares. The trade had an impact of 0.19% on the portfolio.

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The company, which supplies surgical equipment, has a market cap of $25.11 billion and an enterprise value of $33.15 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of -3.20% and return on assets of -1.48% are outperforming 77% of companies in the Medical Devices industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.06 is below the industry median of 2.32.

The company's largest guru shareholder is Vanguard with 1.26% of outstanding shares, followed by Jana Partners (Trades, Portfolio) with 1.12%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.