See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Conagra Brands (CAG) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Conagra Brands (CAG) - free report >>
Image: Bigstock
Is ConAgra (CAG) Stock Worth Adding to Your Portfolio?
On Jun 8, 2016, Zacks Investment Research upgraded ConAgra Foods, Inc. (CAG - Free Report) to a Zacks Rank #2 (Buy) from a Zacks Rank #3 (Hold). Going by the Zacks model, companies with a Zacks Rank #2 are likely to perform better than the broader market over the next quarters.
Why the Upside?
ConAgra is funding lucrative capital deployment programs with the proceeds from the successful divestiture of its Private Brand segment. This is expected to enhance its shareholders’ utility in the long run. Moreover, the proceeds from the spin off will be used to lower the company’s debt burden, thereby assisting it in balance sheet deleveraging. We also expect the company’s margins to improve over time supported by better price/mix, operational efficacy, favorable input prices and increased volumes. The company’s deliberate acquisitions are also anticipated to boost top line in the to-be-reported quarters.
However, analysts remain cautious on the stock, which is clearly evident from the downward revision in the Zacks Consensus Estimate over the past 90 days. As a result, estimates for the stock fell roughly 11.1% to $2.08 per share for 2016 and 0.4% to $2.41 for 2017. The downward estimate revisions are based on anticipation of headwinds like stiff competition leading to market share loss or anticipation of input supply or price-related problems.
CONAGRA FOODS Price and Consensus
CONAGRA FOODS Price and Consensus | CONAGRA FOODS Quote
Other Stocks to Consider
Other well ranked stocks in the industry include B&G Foods Inc. (BGS - Free Report) , Lancaster Colony Corporation (LANC - Free Report) and Omega Protein Corporation . All the three stocks currently sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>