Analysis of High-Yield Stocks in Consumer Goods
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Source: Fool
- Conagra Overview: Conagra Brands (CAG) owns strong brands like Birds Eye and Marie Callender's, having paid dividends annually since 1976, with a current annual dividend of $1.40 per share yielding 7%, indicating its market attractiveness.
- Market Challenges and Response: Despite facing economic challenges with a 3% year-over-year decline in non-GAAP sales, Conagra's frozen meals and snacks are holding or gaining market share, suggesting potential for long-term sales growth.
- Coca-Cola's Strong Branding: Coca-Cola (KO) boasts numerous brands and has increased its dividend for 63 consecutive years, with a current annual dividend of $2.04 per share yielding 2.6%, reflecting its stable profitability and market position.
- Pricing Power and Market Share: Even in a challenging economy, Coca-Cola continues to gain market share in the non-alcoholic beverage sector, having paid $8.8 billion in dividends last year, supported by adjusted free cash flow of $11.4 billion, ensuring dividend sustainability.
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Analyst Views on CAG
Wall Street analysts forecast CAG stock price to fall
14 Analyst Rating
1 Buy
12 Hold
1 Sell
Hold
Current: 19.760
Low
16.00
Averages
18.67
High
22.00
Current: 19.760
Low
16.00
Averages
18.67
High
22.00
About CAG
Conagra Brands, Inc. is a branded food company. The Company’s segments include Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment includes branded, shelf-stable food products sold in various retail channels in the United States. The Refrigerated & Frozen segment includes branded, temperature-controlled food products sold in various retail channels in the United States. The International segment includes branded food products in various temperature states, sold in various retail and foodservice channels outside the United States. The Foodservice segment includes branded and customized food products, including meals, entrees, sauces, and a variety of custom-manufactured culinary products that are packaged for sale to restaurants and other foodservice establishments primarily in the United States. Its brands include Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim, and Angie's BOOMCHICKAPOP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Conagra Brands Issues Earnings Guidance, Stock Drops
- Guidance Reaffirmed: Conagra Brands reiterated its fiscal 2026 earnings guidance at the Consumer Analyst Group conference, expecting net sales to decline by 1% to grow by 1%, a conservative outlook that failed to boost investor confidence, resulting in a more than 4% drop in stock price on the day.
- Profit Forecast Downgraded: The company projects adjusted earnings per share between $1.70 and $1.85, significantly lower than the $2.30 earned in 2025, indicating a continued decline in profitability that may affect future investment appeal.
- Adverse Market Trends: As consumer preferences shift towards fresher, healthier food options, Conagra's packaged food business faces challenges, and its inability to adapt to market changes could lead to further erosion of market share, impacting long-term growth potential.
- Investor Sentiment Deteriorates: The lack of positive earnings outlook and the maintenance of flat sales guidance have weakened investor confidence in the company's future performance, reflected in the significant drop in stock price, highlighting concerns over its strategic direction.
See More
Impact of Weight-Loss Drugs on Airline Stocks
- Impact of Weight-Loss Drugs: Analysts suggest that the rising popularity of GLP-1 weight-loss drugs could lead to lighter passengers and significant fuel savings for airlines, although this overly optimistic view may inflate investor expectations for airline stocks.
- Food Stocks Market Reaction: Despite significant declines in food stocks due to fears surrounding GLP-1, analysts note that while dividends may be attractive, the lack of growth potential limits rebound opportunities, as seen with Conagra Brands.
- AI Market Influence: Comments from Anthropic CEO Dario Amodei have sparked widespread discussions about the future of AI, although the justification for the company's $350 billion valuation is questioned, and the impact on companies like Adobe, Workday, and Salesforce may lead to declining valuations.
- Challenges in Data Center Construction: Analysts emphasize that the cost of building data centers must decrease and power supply must be reliable to achieve profitability in the coming years, although they remain optimistic about the long-term prospects for companies like Amazon, Microsoft, and Alphabet.
See More
Analysis of High-Yield Stocks in Consumer Goods
- Conagra Overview: Conagra Brands (CAG) owns strong brands like Birds Eye and Marie Callender's, having paid dividends annually since 1976, with a current annual dividend of $1.40 per share yielding 7%, indicating its market attractiveness.
- Market Challenges and Response: Despite facing economic challenges with a 3% year-over-year decline in non-GAAP sales, Conagra's frozen meals and snacks are holding or gaining market share, suggesting potential for long-term sales growth.
- Coca-Cola's Strong Branding: Coca-Cola (KO) boasts numerous brands and has increased its dividend for 63 consecutive years, with a current annual dividend of $2.04 per share yielding 2.6%, reflecting its stable profitability and market position.
- Pricing Power and Market Share: Even in a challenging economy, Coca-Cola continues to gain market share in the non-alcoholic beverage sector, having paid $8.8 billion in dividends last year, supported by adjusted free cash flow of $11.4 billion, ensuring dividend sustainability.
See More
Conagra Brands Reiterates Full-Year Guidance Ahead of Conference
- Full-Year Outlook: Conagra Brands reiterated its FY26 organic net sales growth expectation of -1% to +1%, indicating stability amidst market fluctuations despite ongoing challenges.
- Adjusted Margin Forecast: The company anticipates an adjusted operating margin in the range of 11.0% to 11.5%, demonstrating its ongoing efforts in cost control and operational efficiency aimed at enhancing profitability.
- Earnings Per Share Guidance: Adjusted EPS is expected to fall between $1.70 and $1.85, slightly below the consensus of $1.72, yet still reflecting the company's confidence in future earnings.
- Free Cash Flow Improvement: Conagra now expects free cash flow conversion to be approximately 100% for the full year, up from the previous estimate of 90%, indicating positive progress in cash management and capital allocation.
See More
Conagra Brands Reaffirms 2026 Financial Outlook and Innovations
- Financial Guidance Reaffirmed: Conagra Brands reaffirms its fiscal 2026 guidance at the CAGNY conference, expecting free cash flow conversion to reach approximately 100%, up from the previous estimate of 90%, indicating improved cash flow management that supports future investments.
- Product Innovations Preview: The company will preview a series of new innovations expected to launch in 2026, showcasing Conagra's ability to adapt to changing consumer food preferences, which could enhance its competitive edge and drive sales growth.
- Live Webcast Arrangement: A live audio webcast of the CAGNY presentation will be available on February 17 at 9 AM on Conagra's investor relations website, providing a transparent communication channel that enhances investor understanding of the company's strategies and financial health, thereby boosting market confidence.
- Historical Performance Review: Conagra achieved nearly $12 billion in net sales for fiscal 2025, reflecting its leadership in the North American food industry, with sustained sales growth laying a solid foundation for future expansion and innovation.
See More
Conagra Brands Reaffirms 2026 Financial Guidance and Innovations
- Financial Guidance Reaffirmed: Conagra Brands reaffirms its fiscal 2026 financial guidance at the 2026 Consumer Analyst Group of New York conference, projecting organic net sales change between -1% and 1%, indicating stability amid market fluctuations.
- Adjusted Profitability: The company anticipates adjusted operating margins between 11.0% and 11.5%, reflecting ongoing efforts in cost control and operational efficiency, which may enhance investor confidence.
- Earnings Per Share Outlook: Conagra expects adjusted EPS to range from $1.70 to $1.85, showcasing optimism regarding future profitability, potentially attracting more investor interest.
- Free Cash Flow Improvement: The company now expects free cash flow conversion to be approximately 100%, up from the previous estimate of 90%, demonstrating effective cash flow management that supports future investments and shareholder returns.
See More
Conagra Brands Issues Earnings Guidance, Stock Drops
- Guidance Reaffirmed: Conagra Brands reiterated its fiscal 2026 earnings guidance at the Consumer Analyst Group conference, expecting net sales to decline by 1% to grow by 1%, a conservative outlook that failed to boost investor confidence, resulting in a more than 4% drop in stock price on the day.
- Profit Forecast Downgraded: The company projects adjusted earnings per share between $1.70 and $1.85, significantly lower than the $2.30 earned in 2025, indicating a continued decline in profitability that may affect future investment appeal.
- Adverse Market Trends: As consumer preferences shift towards fresher, healthier food options, Conagra's packaged food business faces challenges, and its inability to adapt to market changes could lead to further erosion of market share, impacting long-term growth potential.
- Investor Sentiment Deteriorates: The lack of positive earnings outlook and the maintenance of flat sales guidance have weakened investor confidence in the company's future performance, reflected in the significant drop in stock price, highlighting concerns over its strategic direction.
See More
Impact of Weight-Loss Drugs on Airline Stocks
- Impact of Weight-Loss Drugs: Analysts suggest that the rising popularity of GLP-1 weight-loss drugs could lead to lighter passengers and significant fuel savings for airlines, although this overly optimistic view may inflate investor expectations for airline stocks.
- Food Stocks Market Reaction: Despite significant declines in food stocks due to fears surrounding GLP-1, analysts note that while dividends may be attractive, the lack of growth potential limits rebound opportunities, as seen with Conagra Brands.
- AI Market Influence: Comments from Anthropic CEO Dario Amodei have sparked widespread discussions about the future of AI, although the justification for the company's $350 billion valuation is questioned, and the impact on companies like Adobe, Workday, and Salesforce may lead to declining valuations.
- Challenges in Data Center Construction: Analysts emphasize that the cost of building data centers must decrease and power supply must be reliable to achieve profitability in the coming years, although they remain optimistic about the long-term prospects for companies like Amazon, Microsoft, and Alphabet.
See More
Analysis of High-Yield Stocks in Consumer Goods
- Conagra Overview: Conagra Brands (CAG) owns strong brands like Birds Eye and Marie Callender's, having paid dividends annually since 1976, with a current annual dividend of $1.40 per share yielding 7%, indicating its market attractiveness.
- Market Challenges and Response: Despite facing economic challenges with a 3% year-over-year decline in non-GAAP sales, Conagra's frozen meals and snacks are holding or gaining market share, suggesting potential for long-term sales growth.
- Coca-Cola's Strong Branding: Coca-Cola (KO) boasts numerous brands and has increased its dividend for 63 consecutive years, with a current annual dividend of $2.04 per share yielding 2.6%, reflecting its stable profitability and market position.
- Pricing Power and Market Share: Even in a challenging economy, Coca-Cola continues to gain market share in the non-alcoholic beverage sector, having paid $8.8 billion in dividends last year, supported by adjusted free cash flow of $11.4 billion, ensuring dividend sustainability.
See More
Conagra Brands Reiterates Full-Year Guidance Ahead of Conference
- Full-Year Outlook: Conagra Brands reiterated its FY26 organic net sales growth expectation of -1% to +1%, indicating stability amidst market fluctuations despite ongoing challenges.
- Adjusted Margin Forecast: The company anticipates an adjusted operating margin in the range of 11.0% to 11.5%, demonstrating its ongoing efforts in cost control and operational efficiency aimed at enhancing profitability.
- Earnings Per Share Guidance: Adjusted EPS is expected to fall between $1.70 and $1.85, slightly below the consensus of $1.72, yet still reflecting the company's confidence in future earnings.
- Free Cash Flow Improvement: Conagra now expects free cash flow conversion to be approximately 100% for the full year, up from the previous estimate of 90%, indicating positive progress in cash management and capital allocation.
See More
Conagra Brands Reaffirms 2026 Financial Outlook and Innovations
- Financial Guidance Reaffirmed: Conagra Brands reaffirms its fiscal 2026 guidance at the CAGNY conference, expecting free cash flow conversion to reach approximately 100%, up from the previous estimate of 90%, indicating improved cash flow management that supports future investments.
- Product Innovations Preview: The company will preview a series of new innovations expected to launch in 2026, showcasing Conagra's ability to adapt to changing consumer food preferences, which could enhance its competitive edge and drive sales growth.
- Live Webcast Arrangement: A live audio webcast of the CAGNY presentation will be available on February 17 at 9 AM on Conagra's investor relations website, providing a transparent communication channel that enhances investor understanding of the company's strategies and financial health, thereby boosting market confidence.
- Historical Performance Review: Conagra achieved nearly $12 billion in net sales for fiscal 2025, reflecting its leadership in the North American food industry, with sustained sales growth laying a solid foundation for future expansion and innovation.
See More
Conagra Brands Reaffirms 2026 Financial Guidance and Innovations
- Financial Guidance Reaffirmed: Conagra Brands reaffirms its fiscal 2026 financial guidance at the 2026 Consumer Analyst Group of New York conference, projecting organic net sales change between -1% and 1%, indicating stability amid market fluctuations.
- Adjusted Profitability: The company anticipates adjusted operating margins between 11.0% and 11.5%, reflecting ongoing efforts in cost control and operational efficiency, which may enhance investor confidence.
- Earnings Per Share Outlook: Conagra expects adjusted EPS to range from $1.70 to $1.85, showcasing optimism regarding future profitability, potentially attracting more investor interest.
- Free Cash Flow Improvement: The company now expects free cash flow conversion to be approximately 100%, up from the previous estimate of 90%, demonstrating effective cash flow management that supports future investments and shareholder returns.
See More
