Key Takeaways CAG's Q2 reflects recovery after resolving supply and service issues across frozen and protein categories. CAG emphasizes value offerings as inflation drives selective consumer spending and pressures volumes.Input-cost inflation in proteins and packaging is expected to keep margins under near-term strain.Conagra Brands, Inc. (CAG) is likely to register a decrease in the top and bottom lines when it reports second-quarter fiscal 2026 earnings on Dec. 19. The Zacks Consensus Estimate for revenue ...

Company Overview - Conagra Brands, Inc. (CAG) has a market capitalization of $8.5 billion and is a leading consumer packaged foods company based in Chicago, Illinois, with a diverse portfolio of over 70 well-known brands [1] - The company's operations span various channels including grocery, snacks, frozen, refrigerated, international, and foodservice, serving both retail and commercial customers [1] Market Position - CAG is classified as a mid-cap stock, fitting the category of companies valued between $2 billion and $10 billion [2] - The company is enhancing its market presence through brand modernization and product innovation, focusing on refreshing legacy franchises and introducing trend-driven offerings [2] - This balanced approach across value and premium segments, supported by a robust distribution network, allows Conagra to reach a broad and diverse consumer base [2] Stock Performance - Shares of Conagra have decreased by 37.8% from their 52-week high of $28.51 and have declined 7.4% over the past three months, underperforming the S&P 500 Index, which has rallied by 3.7% in the same period [3] - Over the past 52 weeks, Conagra's shares have plunged 36.8%, contrasting sharply with the S&P 500's gain of 12.9% [4] - The stock has also slid 20.3% over the past six months, underperforming the S&P 500's decline of 12.8% [4] Technical Analysis - The stock continues to show downside pressure, having traded below both its 50-day and 200-day moving averages for most of the past year [5] Fundamental Challenges - Conagra has underperformed the broader market due to weakening fundamentals, with declining sales volumes indicating weaker consumer demand and limited pricing power in a competitive staples market [6] - Analysts expect revenue to contract, raising concerns that newer product launches are not sufficiently strong to reaccelerate growth [6] - Past growth initiatives have yielded modest returns on invested capital, leading to doubts about capital efficiency and long-term value creation [6]

Core Insights - The market anticipates a year-over-year decline in Conagra Brands' earnings due to lower revenues, with a consensus EPS estimate of $0.44, reflecting a -37.1% change [1][3] - Revenues are projected to be $3 billion, down 6% from the previous year [3] - The upcoming earnings report is expected on December 19, and actual results will significantly influence stock price movements [2] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 0.84% lower in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Conagra Brands is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.11% [12] - The stock currently holds a Zacks Rank of 3, suggesting a moderate outlook [12] Earnings Surprise History - In the last reported quarter, Conagra Brands exceeded the expected EPS of $0.33 by delivering $0.39, resulting in a surprise of +18.18% [13] - Over the past four quarters, the company has beaten consensus EPS estimates twice [14] Industry Context - General Mills, a competitor in the Zacks Food - Miscellaneous industry, is expected to report earnings of $1.02 per share, reflecting a -27.1% year-over-year change, with revenues projected at $4.78 billion, down 8.8% [18] - General Mills' consensus EPS estimate has been revised 0.1% lower, leading to a negative Earnings ESP of -0.14% [19]

Conagra Brands, Inc. (NYSE:CAG) is included among the 11 Worst Performing Dividend Stocks Year-to-Date. Conagra (CAG) Shares Remain Under Pressure as Goldman Sachs Cuts Target On November 25, Goldman Sachs trimmed the firm’s price target on Conagra Brands, Inc. (NYSE:CAG) to $16 from $18 and maintained a Sell rating on the shares. Conagra Brands, Inc. (NYSE:CAG) is down by nearly 39% since the start of 2025 due to inflationary pressures, low growth, and high debt levels. In fiscal Q1 2026, the company p ...

Group 1 - The Macquarie Value Fund executed four full-position sales and purchases during Q3 2025 [2] - The Fund sold its position in Conagra Brands Inc. (CAG) [2]

Core Insights - Interest rate cuts enhance the attractiveness of high-yield dividend stocks by reducing competition from fixed-income investments [1] - Lower borrowing costs for companies support both the sustainability of dividends and the appreciation of stock prices [1] Summary by Categories - **Interest Rate Impact** - Interest rate cuts make high-yield dividend stocks more appealing due to decreased competition from fixed-income investments [1] - **Company Financials** - Lower borrowing costs for companies contribute to the sustainability of dividends and facilitate stock price appreciation [1]

Group 1: Market Performance - US equities experienced growth in Q3 2025, with the S&P 500 returning 8.1% and the Russell 1000 Value up 5.3% [1] - The SCCM Enhanced Equity Income Fund had a composite return of 0.9% (net) for the quarter, compared to 3.5% for the S&P 500 Buy-Write Index and 2.5% for the SPDR Bloomberg High Yield Bond ETF [1] Group 2: Conagra Brands, Inc. (CAG) Overview - Conagra Brands, Inc. is a consumer-packaged goods food company, with a one-month return of -1.11% and a 52-week loss of 37.78% [2] - As of December 04, 2025, Conagra's stock closed at $16.95 per share, with a market capitalization of $8.108 billion [2] Group 3: Investment Position and Challenges - The SCCM Enhanced Equity Income Fund sold its position in Conagra Brands during the quarter due to ongoing industry challenges affecting traditional brands [3] - The frozen food category, which constitutes approximately one-third of Conagra's sales, is facing intense competition and declining volumes following inflationary price increases [3] - Conagra's stock valuation is considered attractive at 11x forward earnings, but the food industry has de-rated over recent years, and the current dividend payout ratio is at 80%, exceeding the company's target of 50-55%, which poses a risk to the dividend [3] Group 4: Hedge Fund Interest - Conagra Brands is not among the 30 most popular stocks among hedge funds, with 34 hedge fund portfolios holding the stock at the end of Q3, down from 38 in the previous quarter [4] - While there is potential for investment in Conagra, certain AI stocks are viewed as offering greater upside potential and less downside risk [4]

Core Viewpoint - San Francisco is suing major food brands for selling ultra-processed foods that contribute to public health issues, claiming these companies have profited from harmful products without proper health warnings [1][3][4]. Group 1: Lawsuit Details - The lawsuit, filed by San Francisco City Attorney David Chiu, is 64 pages long and targets 11 major food brands [1][2]. - The brands named in the lawsuit include Kraft Heinz, Mondelez, Coca-Cola, Pepsico, General Mills, Nestlé, and others [2]. Group 2: Accusations Against Brands - The lawsuit accuses these brands of creating addictive foods that lead to health problems, failing to provide health warnings, and making misleading claims about product healthiness [3][4]. - Ultra-processed foods are linked to obesity, type 2 diabetes, cardiovascular disease, and other chronic illnesses [4]. Group 3: Legal and Regulatory Context - Chiu is calling for the brands to stop deceptive marketing practices and to pay civil penalties to San Francisco [5]. - This lawsuit aligns with a broader movement in the U.S. to regulate processed foods, initiated by Health Secretary Robert F. Kennedy Jr. [5][6].

Core Insights - Thompson, Siegel, and Walmsley (TSW) has increased its stake in Conagra Brands, making it the 7th-largest holding in their portfolio, with a total position of 5,269,532 shares valued at $96.48 million as of the end of the third quarter [1][2]. Company Overview - Conagra Brands is a leading North American packaged foods company with a diversified product lineup and strong brand portfolio [6]. - The company reported a trailing twelve months (TTM) revenue of $11.45 billion and a net income of $850.10 million, with a dividend yield of 8.13% [4]. Recent Performance - As of December 1, 2025, Conagra Brands shares were priced at $17.22, reflecting a 33% decline over the prior year and underperforming the S&P 500 by 49 percentage points [3]. - The stock is currently trading at 0.7 times sales, the lowest since 2015, and at 7 times free cash flow, close to its lowest in the last two decades [11]. Investment Rationale - TSW's investment in Conagra aligns with a value investing strategy, as the company is seen as stable despite declining sales growth rates and challenges from GLP-1 medicines impacting food companies [10]. - The company holds $7.5 billion in long-term debt against a market capitalization of $8.2 billion, necessitating continued debt repayment to ensure the safety of its high-yield dividend and overall company longevity [12]. Product Portfolio - Conagra offers a broad portfolio of branded packaged foods, including frozen meals, snacks, and shelf-stable grocery products under well-known brands such as Birds Eye, Duncan Hines, Healthy Choice, and Slim Jim [9]. - The company generates revenue primarily through the manufacturing and distribution of consumer food products across various channels, leveraging scale and brand recognition [9].

Core Insights - The article emphasizes the importance of in-depth research on various income alternatives, including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting the value of joining iREIT on Alpha for comprehensive analysis [1]. Group 1: Research Focus - The analyst Leo Nelissen specializes in major economic developments related to supply chains, infrastructure, and commodities, aiming to provide insightful analysis and actionable investment ideas [2]. - The focus is particularly on dividend growth opportunities, indicating a strategic approach to identifying potential investments [2]. Group 2: Analyst and Company Disclosures - The analyst has no current stock or derivative positions in the companies mentioned and does not plan to initiate any within the next 72 hours, ensuring objectivity in the analysis [3]. - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided, emphasizing the independent nature of the analysts' views [4].