Conagra Manufacturers TodayCAGConagra Manufacturers$26.71 -0.07 (-0.26%) As of 04/4/2025 03:59 PM Eastern52-Week Vary$23.06▼$33.24Dividend Yield5.24percentP/E Ratio26.19Price Goal$28.20
On a day when many buyers noticed nothing however purple, Conagra Manufacturers Inc. NYSE: CAG managed a small acquire of round 1.5%.
This got here regardless of the corporate lacking on the highest and backside strains in its third quarter 2024 earnings report.Get Conagra Manufacturers alerts:Signal Up
With tariff fears accelerating sector rotation, Conagra could also be getting a tailwind from the flight to shopper staples.
CAG inventory futures dropped sharply, which buyers felt when the market opened.
Buyers had to determine what to make of some disappointing numbers:
Internet gross sales of $2.8 billion had been down 6.3%.
Working margin fell to eight.4%, a 712-basis level lower
That’s to not say the report was a complete washout. Income of $2.84 billion was barely under the $2.92 billion anticipated, and Conagra reported earnings per share (EPS) of 51 cents, which was a penny under estimates. In virtually each class, the corporate informed buyers the identical story. That’s, consumption lagged shipments. Quantity additionally stays underneath stress because of ongoing provide chain constraints.
It is a persevering with story for Conagra as customers flip to private-label manufacturers to offset the affect of inflation. The corporate’s ahead full-year steerage suggests there’s extra draw back to come back. Administration expects a web gross sales decline of roughly 2% with adjusted EPS of $2.35, down from $2.67 within the prior 12 months.
All of this explains why CAG inventory is down about 19% from the 52-week excessive it made in October 2024. Nevertheless, in a flight to security, ought to buyers see the post-earnings enhance as the start of a broader transfer greater?
GLP-1 Merchandise Might Be Transferring the Needle
In late 2024, Conagra introduced that beginning in January 2025, choose Well being Alternative frozen meals strains would show an “On Monitor” badge indicating that they had been GLP-1 pleasant. It was the primary firm to name out GLP-1 pleasant on its packaging.
Customers and buyers know concerning the affect that GLP-1 medicine are making on sufferers’ lives and the earnings of many packaged meals corporations. This line of merchandise is excessive in protein, low in energy, and a superb supply of fiber.
Though Conagra didn’t escape gross sales from these merchandise particularly, it famous that it continues to carry the vast majority of quantity within the $6.4 billion single-serve meals class, the place these merchandise fall. Quantity within the just-ended quarter rose 0.6% year-over-year, marking three consecutive quarters of retail quantity development in frozen meals—a class that continues to outperform the broader edible market.
Conagra Manufacturers, Inc. (CAG) Worth Chart for Monday, April, 7, 2025
Buyers Might Be Overreacting to Tariff Fears
Delivering a disappointing earnings report the day after the Trump administration outlined a sweeping tariff coverage may very well be thought of unhealthy timing. Nevertheless, nothing within the announcement is prone to affect Conagra, which has beforehand stated the beforehand introduced tariffs on metal and aluminum would have minimal affect on the corporate’s enterprise.
That signifies that whereas costs might go up in some areas, they received’t essentially go up for corporations like Conagra. That may be welcome information for buyers who’ve listened to the corporate’s administration speak about customers persevering with to go for retailer manufacturers to be able to get monetary savings.
The report confirmed that the development stays intact; nevertheless, this newest spherical of tariffs is unlikely so as to add further pricing stress for Conagra.
CAG Inventory Might Be a Strong Excessive-Yield Hangout
Conagra Manufacturers Dividend PaymentsDividend Yield5.24% Annual Dividend$1.40 Annualized 3-Yr Dividend Growth4.91% Dividend Payout Ratio205.88% Subsequent Dividend PaymentMay. 29 CAG Dividend Historical past
Conagra isn’t going to be the primary inventory that buyers will think about in a bull market.
However shopper staples shares shine throughout occasions of uncertainty. And that’s notably true of shares like CAG that include a horny dividend that presently yields 5.2%.
Mix that with a ahead price-to-earnings (P/E) ratio of round 11x, and buyers have the elements for a strong place to park their cash within the brief time period.
The inventory is presently discovering assist round its 50-day easy shifting common.
Analysts’ consensus value goal of $28.20 corresponds to the inventory’s December 2024 excessive.Earlier than you think about Conagra Manufacturers, you may need to hear this.Whereas Conagra Manufacturers presently has a Maintain ranking amongst analysts, top-rated analysts imagine these 5 shares are higher buys.View The 5 Shares Right here With the proliferation of information facilities and electrical automobiles, the electrical grid will solely get extra strained. Obtain this report back to find out how vitality shares can play a task in your portfolio as the worldwide demand for vitality continues to develop.Get This Free Report
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