Conagra Manufacturers At the moment
As of 04/4/2025 03:59 PM Jap
- 52-Week Vary
- $23.06
▼
$33.24
- Dividend Yield
- 5.24%
- P/E Ratio
- 26.19
- Worth Goal
- $28.20
On a day when many buyers noticed nothing however purple, Conagra Manufacturers Inc. NYSE: CAG managed a small achieve of round 1.5%.
This got here regardless of the corporate lacking on the highest and backside traces in its third quarter 2024 earnings report.
With tariff fears accelerating sector rotation, Conagra could also be getting a tailwind from the flight to client staples.
CAG inventory futures dropped sharply, which buyers felt when the market opened.
Traders had to determine what to make of some disappointing numbers:
- Web 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 nearly each class, the corporate informed buyers the identical story. That’s, consumption lagged shipments. Quantity additionally stays beneath strain attributable to ongoing provide chain constraints.
It is a persevering with story for Conagra as shoppers 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 internet 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 increased?
GLP-1 Merchandise Might Be Transferring the Needle
In late 2024, Conagra introduced that beginning in January 2025, choose Well being Alternative frozen meals traces 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.
Shoppers and buyers know in regards to 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 great supply of fiber.
Though Conagra didn’t get away gross sales from these merchandise particularly, it famous that it continues to carry nearly all 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.
These quantity beneficial properties got here at a time when the corporate continues to be feeling the affect of provide constraints on frozen meals containing hen and frozen vegetable merchandise.
Conagra Manufacturers, Inc. (CAG) Worth Chart for Saturday, April, 5, 2025
Traders 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 implies that whereas costs might go up in some areas, they gained’t essentially go up for corporations like Conagra. That might be welcome information for buyers who’ve listened to the corporate’s administration speak about shoppers persevering with to go for retailer manufacturers with the intention to lower your expenses.
The report confirmed that the development stays intact; nevertheless, this newest spherical of tariffs is unlikely so as to add extra pricing strain for Conagra.
CAG Inventory Might Be a Stable Excessive-Yield Hangout
Conagra Manufacturers Dividend Funds
- Dividend Yield
- 5.24%
- Annual Dividend
- $1.40
- Annualized 3-Yr Dividend Development
- 4.91%
- Dividend Payout Ratio
- 137.25%
- Subsequent Dividend Fee
- Might. 29
Conagra isn’t going to be the primary inventory that buyers will take into account in a bull market.
However client staples shares shine throughout occasions of uncertainty. And that’s notably true of shares like CAG that include an engaging dividend that at present yields 5.2%.
Mix that with a ahead price-to-earnings (P/E) ratio of round 11x, and buyers have the substances for a stable place to park their cash within the quick time period.
The inventory is at present discovering assist round its 50-day easy shifting common.
Analysts’ consensus worth goal of $28.20 corresponds to the inventory’s December 2024 excessive.
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