Conagra Brands Faces 38.3% Year-to-Date Decline Amid Value Reassessment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Yahoo Finance
- Stock Price Decline: Conagra Brands' share price has fallen to approximately $17.08, down 4.7% over the past week and 38.3% year-to-date, reflecting market concerns about its future growth potential, which may impact investor confidence.
- Cash Flow Analysis: The latest twelve-month Free Cash Flow stands at about $897 million, projected to rise to roughly $1.28 billion by 2029, indicating potential for stable growth over the next decade, yet the current stock price reflects a 77.3% discount to its intrinsic value, highlighting undervaluation risks.
- Sales Ratio Assessment: Conagra currently trades at a price-to-sales ratio of about 0.73x, below the fair ratio of 0.84x, suggesting it is modestly undervalued based on sales metrics, which could affect its financing and market positioning.
- Investor Sentiment: Despite positive moves in brand investments and portfolio simplification, concerns about packaged food demand and shifting consumer preferences may pose challenges for the company in regaining pricing power, impacting its long-term growth strategy.
CAG
$17.08+Infinity%1D
Analyst Views on CAG
Wall Street analysts forecast CAG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAG is 20.33 USD with a low forecast of 18.00 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
10 Hold
1 Sell
Hold
Current: 16.980
Low
18.00
Averages
20.33
High
23.00
Current: 16.980
Low
18.00
Averages
20.33
High
23.00
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.
