|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||33.89 - 33.89|
|52 Week Range||27.84 - 42.14|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Wall Street analysts continue to have a favorable outlook on Conagra Brands (CAG) stock. They expect its recent acquisitions, higher net pricing, improving mix, and cost and productivity savings measures to drive its sales and earnings growth rate. A lower effective tax rate is also likely to cushion its earnings.
Conagra Brands (CAG) is slated to announce its first quarter of fiscal 2019 results on Thursday, September 27. Analysts expect it to sustain its sales and earnings growth momentum, but they expect the growth rate to decelerate, which could be a concern.
On September 19, Hormel Foods (HRL) was trading at a 12-month forward PE (price-to-earnings) ratio of 21.5x. However, the company is trading at a higher valuation multiple in comparison to peers. Tyson Foods (TSN) is trading at a 12-month forward PE ratio of 10.2x. Pilgrim’s Pride (PPC), Campbell Soup (CPB), and Conagra (CAG) are trading at 8.2x, 16.2x, and 16.3x, respectively, as of September 19.
Hormel Foods’ (HRL) current dividend yield is 1.9% based on the closing price of $39.66 as of September 19. In comparison, Tyson Foods’ (TSN) current dividend yield stands at 1.9%, while that of Sanderson Farms (SAFM) is 1.3%. Campbell Soup’s (CPB) current yield is 3.5%, and that of Conagra’s (CAG) is 2.3% based on its September 19 closing price. Dividend yield implies the cash flow received by the investor for each dollar invested in the company’s stock.
The majority of analysts have maintained a “hold” rating for Hormel Foods (HRL). Over the past 15 days, we have seen just one change in target price. On September 17, BMO upped the price target on Hormel Foods to $44.00 from $38.00.
Recently, McCormick’s (MKC) margins have been impressive. The company’s margins have expanded at a healthy rate in the past three quarters despite facing headwinds from higher distribution costs. During the last reported quarter, McCormick’s gross margin expanded by 340 basis points, while the operating margins improved by 330 basis points. Higher volumes, increased pricing, improved mix, and cost-saving measures more than offset the negatives stemming from cost inflation.
McCormick (MKC) is expected to announce its third-quarter results on September 27. Analysts expect the company to sustain its double-digit sales and EPS growth rate in the third quarter. McCormick’s top line will likely benefit from its recent acquisitions. Meanwhile, continued strength in the company’s underlying business, new products, higher net price realization, and expanded distribution should support its sales growth rate.
The J.M. Smucker Company (SJM) reported strong net sales and earnings in its last reported quarter. The company’s acquisition of Ainsworth significantly boosted its net sales growth rate. Meanwhile, its adjusted earnings jumped 17.9% year-over-year driven by a substantial fall in the effective tax rate.
This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on September 7. Over the last month, growth of ETFs holding CPB is favorable, with net inflows of $18.77 billion. This is among the highest net inflows seen over the last one-year and the rate of additional inflows appears to be increasing.
Analysts maintain a consensus “sell” recommendation on the Campbell Soup Company (CPB) stock. Campbell Soup’s management has announced that it’s looking to divest its noncore Fresh and International segments and that it plans to pay down its debt with the proceeds. Campbell Soup reported adjusted EPS of $2.87 in fiscal 2018.
General Mills (GIS) disappointed with its margins performance in its fiscal 2019 first quarter. Its adjusted gross and operating profit margins fell, reflecting continued inflation in input costs and higher supply-chain costs.
Shares of packaged food manufacturers have eroded a significant amount of investors’ wealth so far this year. Weak organic sales, low margins, and earnings pressures are taking a toll on the financials of these companies and, in turn, their stock prices.
Investing.com - Cannabis stocks were off to the races again midday after a regulatory announcement, while consumer staples were hit by a double whammy of trade tensions and weak earnings.
Bennett Dorrance, a descendent of the company’s founder, is in the cross hairs of activist investor Dan Loeb.
Third Point, run by billionaire investor Daniel Loeb, launched a proxy fight last week to replace Campbell's 12-member board. Loeb's $18 billion hedge fund, which owns a 5.65 percent stake, said at the time that the soup-maker was in a "mess" and faulted its board for failing to take corrective action.
(Reuters) - Campbell Soup Co and hedge fund Third Point LLC on Friday filed preliminary proxy materials urging the food company's shareholders to vote in favor of two entirely different slates of board nominees. Third Point, run by billionaire investor Daniel Loeb, launched a proxy fight last week to replace Campbell's 12-member board. Loeb's $18 billion hedge fund, which owns a 5.65 percent stake, said at the time that the soup-maker was in a "mess" and faulted its board for failing to take corrective action.
Analysts maintained a neutral outlook on General Mills (GIS) stock before its earnings for the fiscal first quarter of 2019. Incremental sales from the Blue Buffalo acquisition, higher net price realization, cost and productivity savings, and lower taxes are expected to drive the company’s financials.
Campbell Soup Company (CPB) has been named to the Dow Jones Sustainability North America Index for the 10th consecutive year. “Campbell is honored to again be included on the Dow Jones Sustainability Indices,” said Dave Stangis, Campbell’s Chief Sustainability Officer.
General Mills (GIS) is expected to announce its results for the fiscal first quarter of 2019 on Tuesday, September 18. Analysts expect the company’s top line to gain significantly from its recent acquisition of Blue Buffalo. However, continued weakness in its underlying business remains a concern. Analysts expect General Mills’ organic sales growth to remain low as benefits from higher pricing are expected to be offset by soft volumes.
This represents an increase in short interest as investors who seek to profit from falling equity prices added to their short positions on September 7. Index (PMI) data, output in the Consumer Goods sector is rising.
Moody's Investors Service, Inc. ("Moody's") today confirmed Campbell Soup Company's ("Campbell") senior unsecured debt rating at Baa2 and its commercial paper rating at Prime-2. The ratings outlook is negative. The review was prompted by an unexpectedly sharp decline in profitability in Campbell's fiscal third quarter and the sudden resignation of the company's Chief Executive Officer.
Campbell (CPB) posts negative sales surprise in six of the past seven quarters. The company has also been witnessing strained margins due to cost inflation.