Last Updated: 14 Sep 2024
Executive Summary
ConAgra Foods Inc. (CAG), a consumer packaged goods company, has a market capitalization of $15.35 billion. Despite a decline in quarterly earnings and revenue, the company remains financially sound with a strong EBITDA of $2.33 billion. Analysts have a "Hold" rating on the stock, with a target price of $30.5. The current stock price of $32.05 suggests a potential downside.
Company Overview
ConAgra Brands, Inc. produces and sells a wide range of food products under various brand names. The company's operations are divided into four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. ConAgra has a strong distribution network and a presence in over 100 countries.
Fundamental Analysis
Earnings: ConAgra's diluted EPS for the latest quarter was $0.72, a 9.9% decrease year-over-year. The company's revenue also declined by 2.3% to $12.05 billion.
Profitability: ConAgra's profit margin is 2.88%, while its operating margin is 17.9%. The company's return on assets and equity are 5.68% and 4.01%, respectively.
Valuation: ConAgra's trailing PE ratio is 44.51, while its forward PE ratio is 12.12. The company's price-to-sales ratio is 1.274, and its price-to-book ratio is 1.802.
Technical Analysis
Moving Averages: ConAgra's 50-day moving average is $30.41, while its 200-day moving average is $29.54. The stock price is currently trading above both moving averages.
Support and Resistance: The stock's immediate support level is at $30.5, while the resistance level is at $33.24.
Short Term Outlook
In the short term, ConAgra's stock price is expected to remain range-bound between $30.5 and $33.24. The company's earnings and revenue declines may continue to weigh on the stock price. However, the company's strong financial position and analyst "Hold" rating provide some support.
Long Term Outlook
In the long term, ConAgra's growth prospects are tied to the performance of the consumer packaged goods industry. The company's focus on innovation and expansion into new markets could drive future growth. However, the company faces competition from large multinational food companies.
Analyst Recommendations
Analysts have a "Hold" rating on ConAgra Foods Inc. with a target price of $30.5. Three analysts recommend a "Buy" rating, while 14 recommend a "Hold" rating. No analysts recommend a "Sell" or "Strong Sell" rating.
