Shares of food giant Conagra Brands hit a fresh all-time high in mid-January and then the stock consolidated. It stayed above its 200-day line though and headed upward again early this month. It could be shooting for a new high amid accelerating profit growth. On Monday, the Relative Strength (RS) Rating for Conagra stock climbed to 75, up from 68 — a sign of renewed strength.
The upwardly revised 75 RS Rating puts Conagra in the top 25% of stocks for price performance. Taken with its other key ratings, and share price movement, it shows Conagra is moving in the right direction. It's still a few points below a benchmark that delineates the best stocks to buy and watch though. Stocks that go on to make the biggest gains often have an 80 or better RS Rating in the early stages of their moves. See if Conagra Brands can continue to rebound and clear that threshold.
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Conagra Stock A Favorite Of Big Money Investors
Among its other key ratings, Chicago-based Conagra Brands sports an 86 Earnings Per Share Rating, putting it in the top 14% of companies for profit growth in recent quarters and years. Its Composite Rating is a milder 77. Meanwhile, its B- Accumulation/Distribution Rating, on an A+ to E scale with A+ tops, shows that institutional investors like mutual funds and ETFs are buying more shares than selling.
Conagra makes frozen and shelf-ready foods under a wide variety of brands including Slim Jim jerky, Healthy Choice meals and Hunt's tomato sauce. Also Marie Callender's, Reddi Wip, Vlasic and Birds Eye, among other brands.
Conagra stock is trying to complete a flat base with a 41.40 entry. Monday afternoon, it closed up 1.1% at 36.78. See if it can clear the breakout price in volume at least 40% above average.
Highest Earnings Growth In A Year
In its most recent quarter earnings grew 27% year over year to 81 cents per share. Four quarters ago the food company reported a 2% dip in EPS. Then revenue grew 20% and 14% before posting its strongest growth in a year at 27%. Sales last quarter rose 8% to $3.31 billion. Its reported mid-to-high single-digit profit growth every quarter this past year.
Conagra stock earns the No. 5 rank among its peers in the Food-Packaged industry group. Seneca Foods and Post Holdings are also among the group's highest-rated stocks.
IBD's unique Relative Strength Rating measures market leadership by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
