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Conagra Brands (CAG) Flat As Market Gains: What You Should Know

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Conagra Brands (CAG - Free Report) closed at $34.39 in the latest trading session, marking no change from the prior day. This move lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 1.26%.

Prior to today's trading, shares of the company had lost 1.91% over the past month. This has lagged the Consumer Staples sector's loss of 1.11% and the S&P 500's gain of 4.31% in that time.

Conagra Brands will be looking to display strength as it nears its next earnings release, which is expected to be July 13, 2023. The company is expected to report EPS of $0.61, down 6.15% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.06 billion, up 5.1% from the prior-year quarter.

Any recent changes to analyst estimates for Conagra Brands should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Conagra Brands is currently a Zacks Rank #2 (Buy).

Investors should also note Conagra Brands's current valuation metrics, including its Forward P/E ratio of 12.1. This represents a discount compared to its industry's average Forward P/E of 18.06.

Also, we should mention that CAG has a PEG ratio of 1.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CAG's industry had an average PEG ratio of 2.42 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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