Conagra Brands (CAG) closed at $28.33 in the latest trading session, marking a +0.46% move from the previous day. This change topped the S&P 500’s 0.41% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.46%.
Shares of the company witnessed a gain of 4.17% over the previous month, following the performance of the Consumer Staples sector with its gain of 5.08% and the gain of the S&P 500 of 7.62%.
Analysts and investors alike will be watching Conagra Brands’ performance in its upcoming earnings release. The company is expected to report EPS of $0.67, marking a 17.28% drop compared to the same quarter last year. At the same time, our latest consensus estimate expects the revenue to be $3.25 billion, showing a 1.88% drop compared to the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.68 per share and revenue of $12.3 billion, showing changes of -3.25% and +0.2%, respectively, from the previous year.
It is also important to note the recent changes to analyst ratings for Conagra Brands. These latter adjustments often reflect the changing dynamics of short-term trading patterns. Therefore, positive changes in ratings mean analyst optimism regarding the company’s business and profitability.
Our research suggests that these changes in valuations have a direct relationship with upcoming stock price performance. To use this, we created the Zacks Rank, a proprietary model that integrates these rating changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable record of outperformance, independently reviewed, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has remained stagnant. Currently, Conagra Brands holds a Zacks Rank of #4 (Sell).
Looking at valuation, Conagra Brands currently trades with a Forward P/E ratio of 10.54. This indicates a discount compared to its industry’s Forward P/E of 16.46.
We can also see that CAG currently has a PEG ratio of 2.74. This popular metric is similar to the widely known P/E ratio, with the difference that the PEG ratio also takes into account the company’s expected earnings growth. The Food – Miscellaneous industry had an average PEG ratio of 2.36 as trading ended yesterday.
The Food – Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 143, placing it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock metrics, and many more, at Zacks.com.
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