Conagra Brands, Inc. (CAG), headquartered in Chicago and valued at a market cap of $13.6 billion, is a prominent name in consumer packaged goods. Its portfolio includes well-known brands like Birds Eye, Duncan Hines, Healthy Choice, Marie Callender’s, Reddi-wip, Slim Jim, and Angie’s BOOMCHICKAPOP, offering a wide array of premium food products to its customers.
Shares CAG have significantly underperformed the broader market over the past 52 weeks. CAG has surged 2.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 36.8%. In 2024, shares of CAG are down marginally, compared to SPX’s 25.7% gains on a YTD basis.
Narrowing the focus, CAG’s underperformance is also apparent compared to the Consumer Staples Select Sector SPDR (XLP). The exchange-traded fund has gained about 17.5% over the past year. Moreover, the ETF’s 12.2% gains on a YTD basis compare to the stock’s decline over the same time frame.
Shares of Conagra Brands dropped 10.1% after its fiscal Q1 2025 earnings missed expectations. Weaker pricing, lower volumes, and a $27 million sales impact from temporary disruptions in the Hebrew National business weighed on results.
For the current fiscal year, ending in May 2025, analysts expect CAG to report an EPS decline of 3% to $2.59 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters.
Among the 15 analysts covering CAG stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” rating and 12 “Holds.”
This configuration is more bullish than two months ago when two analysts suggested a “Strong Buy” for the stock.
On Oct. 17, Wells Fargo & Company (WFC) raised Conagra Brands' price target from $30 to $31, while maintaining an “Equal-Weight” rating. Following meetings with key executives, the firm noted management’s confidence in FY25 and its strong positioning for long-term growth.
The mean price target of $31.20 represents a 9.7% upswing to CAG’s current price levels. The Street-high price target of $36 suggests an upside potential of 26.6%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
