Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Conagra Brands, Inc. (NYSE:CAG) Earnings Preview: Navigating Economic ChallengesConagra Brands, Inc. (NYSE:CAG) is a major player in the packaged foods industry, known for its diverse portfolio of brands. As the company prepares to release its quarterly earnings on December 19, 2025, analysts are closely watching its performance. The expected earnings per share (EPS) is $0.44, with projected revenue of approximately $2.98 billion.Conagra is currently navigating a challenging economic environment, focusing o ...

Core Insights - The article emphasizes the importance of macroeconomic analysis and market trends for informed investment decisions [1] Group 1 - The author expresses a passion for finance and global markets, focusing on economic analysis at a macro level [1] - The goal is to equip investors with tools and knowledge for confident investment decisions [1] - The author is open to feedback and aims to enhance the writing experience for readers [1] Group 2 - There is no mention of any stock, option, or derivative positions in the companies discussed, nor plans to initiate such positions [2] - The article does not provide specific investment recommendations or advice tailored to individual investors [2] - The views expressed may not reflect those of Seeking Alpha as a whole, indicating a diversity of opinions among analysts [2]

Core Viewpoint - Conagra Brands (CAG) stock has experienced a decline, reaching a low of $16.60, which represents a temporary decrease of 10% from previous levels [1] Group 1: Stock Performance - CAG stock has continued to drift lower since the last analysis published on October 15, 2025, indicating a bearish trend [1] - The stock has shown a modest bounce from its low point, suggesting potential for recovery [1] Group 2: Investment Philosophy - The focus is on identifying undervalued stocks with a favorable risk-reward profile, emphasizing the importance of understanding ownership [1] - Simplicity in investment ideas is highlighted as a key principle, with a contrarian approach being favored [1]

Core Insights - Conagra Brands (CAG) stock has experienced a decline, reaching a low of $16.60, which represents a temporary decrease of 10% from previous levels [1] Group 1: Stock Performance - CAG stock has shown a modest bounce after hitting the low point of $16.60 [1] Group 2: Investment Philosophy - The focus is on identifying undervalued stocks with a balance of risk and reward, emphasizing the importance of understanding ownership to limit risks while maximizing potential upside [1] - Simplicity in investment ideas is highlighted as a key principle, with a contrarian approach being favored [1]

Core Insights - Conagra Brands, Inc. (CAG) is expected to report a decline in both revenue and earnings for the second quarter of fiscal 2026, with revenue estimated at approximately $3 billion, reflecting a 6.2% decrease year-over-year [1] - The earnings consensus remains at 44 cents per share, indicating a 37.1% drop compared to the previous year [2] Business Recovery and Consumer Behavior - The second quarter is anticipated to show signs of recovery as Conagra has resolved previous supply and service issues, particularly in frozen and protein-heavy categories, leading to improved product availability [3][10] - Consumer behavior is shifting towards value-seeking, especially among lower-income households due to ongoing inflation, prompting Conagra to focus on value-oriented products rather than premium innovations [4][10] Cost Pressures and Margin Outlook - Input-cost inflation, particularly in proteins and packaging, is expected to impact margins negatively, with an anticipated contraction of 330 basis points to 23.1% for the adjusted gross margin in the second quarter [5][10] - Despite productivity initiatives and selective pricing actions, these measures are unlikely to fully mitigate the near-term cost pressures [5] Earnings Predictions - The model suggests a potential earnings beat for Conagra Brands, supported by a positive Earnings ESP of +0.11% and a Zacks Rank of 3 (Hold) [6]

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]