Consumer packaged goods giant Conagra Brands (CAG) will release its earnings report for its fiscal fourth quarter on June 10. By perhaps most indications, investors are anxiously biting their fingernails. Since the start of the year, CAG stock dropped nearly 24%, reflecting sustained negativity. Indeed, since CAG collapsed in October last year, it really hasn’t been able to inspire investor confidence.
Much of the erosion centers on the challenging economic environment and the structural headwinds that have materialized. As Barchart’s Neha Panjwani wrote, “Conagra's underperformance is attributed to lower sales and weaker performance across all segments. Management blames supply constraints limiting shipments to retailers rather than a slowdown in consumer demand. Consumption lagged shipments, and volume is still under pressure due to ongoing supply chain challenges. Furthermore, consumers are turning to private-label brands to offset inflation impact.”
