Group 1 - Conagra Brands, Inc. is facing challenges due to 7% inflation and issues with tin can supply, which are negatively impacting its margins [2] - The company has a portfolio of well-known brands, including Slim Jim, Marie Callender's, and Duncan Hines, but is struggling to pass on price increases to consumers [2] - Despite these challenges, Conagra has indicated that it can maintain its dividend payments, although concerns about the sustainability of dividends are raised [2] Group 2 - Jim Cramer emphasizes the importance of growth in stocks over high dividends, suggesting that high dividends may indicate underlying problems within the company [1] - The overall sentiment is that while Conagra has potential, other sectors, particularly AI stocks, may offer better investment opportunities with less risk [2]

Core Insights - Conagra Brands, Inc. (CAG) is expected to report a decline in both revenue and earnings for the first quarter of fiscal 2026, with revenues estimated at $2.61 billion, reflecting a 6.5% decrease from the previous year [1][10] - The earnings consensus has dropped to 33 cents per share, indicating a 37.7% decline compared to the same quarter last year [2][10] Group 1: Financial Performance Expectations - The consensus estimate for revenues is $2.61 billion, which represents a 6.5% drop from the prior-year quarter [1][10] - Earnings per share are projected at 33 cents, down 37.7% from the year-ago quarter [2][10] - The company has a negative trailing four-quarter earnings surprise of 3.6% on average [2] Group 2: Challenges Impacting Performance - Conagra Brands faced significant challenges in fiscal 2025, including persistent inflation, foreign exchange headwinds, and supply constraints, which are expected to continue affecting results in the first quarter of fiscal 2026 [3] - Elevated costs in raw materials, packaging, labor, and logistics, particularly for proteins and tinplate steel due to tariffs, are likely to pressure margins [4] - A projected 300-basis-point contraction in adjusted gross margin is anticipated for the quarter [4] Group 3: Segment Performance - The International segment is expected to see a 7.6% decline in sales due to volatile currency movements, volume softness, and competitive pressures [5] - Despite challenges, Conagra's strengths in innovation and brand support, particularly in frozen meals and snacks, continue to show positive consumer response [6] Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for Conagra Brands, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of +6.95% [7]

Core Insights - Conagra Brands, Inc. is set to release its quarterly earnings on October 1, 2025, with analysts estimating an earnings per share (EPS) of $0.33 and projected revenues of approximately $2.62 billion [1][2] Financial Performance Expectations - Despite the revenue projections, a decline in earnings is anticipated for the quarter ending August 2025, indicating that Conagra may not meet the conditions for an earnings beat, which could lead to significant stock price fluctuations [2] Valuation Metrics - The company's price-to-earnings (P/E) ratio is around 7.69, suggesting a low valuation relative to its earnings, while the price-to-sales ratio of about 0.76 indicates that investors are paying less than a dollar for every dollar of sales, appealing to value-focused investors [3] - The enterprise value to sales ratio is approximately 1.47, and the enterprise value to operating cash flow ratio stands at around 10.11, providing insights into how the market values Conagra's cash-generating capabilities [4] - An earnings yield of approximately 13.01% reflects the return on investment for shareholders [4] Debt and Liquidity Position - Conagra's debt-to-equity ratio is about 0.93, indicating a moderate level of debt relative to equity, while the current ratio of approximately 0.71 suggests potential challenges in covering short-term liabilities with short-term assets [5] - Management's discussion during the earnings call will be critical for assessing the sustainability of immediate price changes and future earnings projections [5]

Company Overview - Conagra Brands (CAG) is expected to report a year-over-year decline in earnings, with a projected earnings per share (EPS) of $0.33, reflecting a decrease of 37.7% compared to the previous year [3] - Revenues for the quarter are anticipated to be $2.61 billion, down 6.5% from the same quarter last year [3] Earnings Expectations - The upcoming earnings report is scheduled for October 1, and the stock may experience upward movement if the reported numbers exceed expectations [2] - Conversely, if the results fall short, the stock may decline [2] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate for Conagra Brands is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +6.95% [11] Historical Performance - In the last reported quarter, Conagra Brands was expected to post earnings of $0.59 per share but delivered $0.56, resulting in a surprise of -5.08% [12] - Over the past four quarters, the company has only beaten consensus EPS estimates once [13] Industry Context - In the Zacks Food - Miscellaneous industry, Lamb Weston (LW) is also expected to report earnings of $0.54 per share, indicating a year-over-year decline of 26% [17] - Lamb Weston’s revenue is projected to be $1.61 billion, down 2.5% from the previous year [18]

Company Performance - Conagra Brands (CAG) has hit a new 52-week low, marking the 46th low in the past 12 months, and the stock is currently at a 10-year low [2] - Over the past 20 years, CAG stock has declined by 5.5%, while the S&P 500 has gained 442%, indicating significant value destruction [4] - In the last 10 years, CAG stock has declined by 42%, with an annualized total return of 0.78%, which still reflects poor performance [4] Analyst Ratings and Market Outlook - Among 17 analysts covering CAG, only two rate it as a Buy, with a target price of $20.60, approximately 13% higher than its current trading price, suggesting limited upside potential [5] - The near-term technicals suggest that CAG's stock is a strong sell, indicating it may be a value trap rather than a value buy [3] Financial Growth - Conagra's revenue growth over 20 years has been minimal, with fiscal 2005 revenue at $11.38 billion and fiscal 2025 revenue at $11.61 billion, representing only a $230 million increase [5]

Group 1 - Conagra Brands, Inc. (CAG) is valued at a market cap of $8.9 billion and operates over 70 iconic brands across various segments including grocery, snacks, and foodservice [1][2] - CAG is classified as a mid-cap stock, highlighting its size and influence in the packaged foods industry, and it focuses on brand modernization and product innovation to maintain market relevance [2] - The company's shares have retreated 44.3% from their 52-week high of $32.90, with a 14.8% decline over the past three months, underperforming the Nasdaq Food & Beverage ETF [3][4] Group 2 - Over the past 52 weeks, CAG shares have fallen 43.3%, significantly underperforming the FTXG's 16.1% drop, and are down 34% year-to-date compared to FTXG's 6.3% decline [4] - Following disappointing Q4 results, where revenue was $2.8 billion and adjusted EPS was $0.56, CAG's shares fell 4.4%, with year-over-year declines attributed to various economic pressures [5] - Analysts remain cautious about CAG's prospects, with a consensus rating of "Hold" and a mean price target of $20.60, indicating a 12.4% premium to current price levels [6]

Group 1 - The article introduces Cairnstone Compass as a new contributing analyst for Seeking Alpha, encouraging readers to share their investment ideas [1] - The analyst has over a decade of experience in finance, focusing on mid-cap stocks across various sectors including consumer staples, discretionary, industrials, and healthcare [2] - The investment philosophy emphasizes a disciplined and patient approach, favoring companies with strong fundamentals and a durable competitive advantage [2] Group 2 - The analyst combines bottom-up fundamental analysis with technical indicators to provide a comprehensive perspective on stock valuation [2] - The research aims to help readers make informed investment decisions and offers a framework for independent company analysis [2] - The article clarifies that the analyst has no current positions in the mentioned stocks and does not benefit from any stock movements [3][4]

Core Insights - The article introduces a new contributing analyst, Cairnstone Compass, to Seeking Alpha, emphasizing the opportunity for others to share investment ideas and gain exposure [1] Group 1: Analyst Background - The analyst is based in the UK and has over a decade of experience in finance, focusing on equity research with a valuation-driven approach [2] - Specialization includes mid-cap stocks across various sectors such as consumer staples, discretionary, industrials, and healthcare [2] - The research methodology combines bottom-up fundamental analysis with technical indicators, aiming to identify undervalued companies [2] Group 2: Investment Philosophy - The investment philosophy emphasizes discipline and patience, favoring companies with strong fundamentals and a durable competitive advantage [2] - The analyst incorporates financial metrics, peer benchmarking, analyst commentary, technical signals, and discounted cash flow modeling in the research [2] - The goal is to help readers make informed decisions and provide a framework for independent company analysis [2]

Group 1 - Conagra Brands, Inc. (NYSE:CAG) has experienced a significant decline in its stock price, losing 29.7% year-to-date, reflecting broader challenges in the food stock sector [2] - The company is struggling to attract younger consumers, which is impacting its sales and market position [2] - Jim Cramer suggests that the solution for Conagra involves major mergers within the sector to reduce costs and create a more competitive landscape, proposing a consolidation similar to a "big three" model [2] Group 2 - Conagra is facing challenges with pricing power and margins, exacerbated by 7% inflation and supply chain issues, particularly with tin cans [3] - The company's management has indicated confidence in maintaining dividend payments, but concerns about the necessity of addressing dividend sustainability reflect deeper financial issues [3] - Despite the potential of Conagra as an investment, there is a belief that other sectors, particularly AI stocks, may offer better returns with lower risk [3]

Group 1 - Conagra Brands, Inc. (NYSE: CAG) has experienced a significant decline in stock price over the last several years, leading to an increase in dividend yield to well over the industry average [1] - The company is viewed as an undervalued asset with potential income opportunities and underpriced growth prospects, attracting fundamental investors [1] - The investment philosophy surrounding Conagra emphasizes value prioritization and contrarian investment strategies, avoiding small-cap or speculative investments [1] Group 2 - The analyst holds a beneficial long position in Conagra Brands shares, indicating confidence in the company's future performance [2] - The article reflects the author's personal opinions and is not influenced by any business relationships with the company [2]