Conagra Stock Could Thrive as Tariffs Hit Other Sectors

Core Viewpoint - Conagra Brands Inc. reported disappointing third-quarter earnings for 2024, missing revenue and earnings per share estimates, yet managed a slight stock gain amidst broader market declines [1][2][3] Financial Performance - Revenue for the quarter was $2.84 billion, slightly below the expected $2.92 billion, with earnings per share (EPS) at 51 cents, one cent below estimates [2] - Net sales declined by 6.3% year-over-year, with a projected full-year net sales decline of approximately 2% and adjusted EPS expected to drop from $2.67 to $2.35 [3][4] - Operating margin fell to 8.4%, a decrease of 712 basis points [4] Market Trends - Consumers are increasingly turning to private-label brands due to inflation, impacting Conagra's sales [3][10] - The company continues to hold a majority volume in the $6.4 billion single-serve meals category, with a 0.6% year-over-year volume increase in the last quarter [7] Product Development - Conagra plans to label select Health Choice frozen food lines as "GLP-1 friendly" starting January 2025, indicating a focus on health-conscious products [5][6] - The frozen foods category is outperforming the broader edible market, with three consecutive quarters of retail volume growth [7] Stock and Dividend Information - Conagra's stock is currently yielding 5.24% with an annual dividend of $1.40 and a payout ratio of 137.25% [11] - The stock is viewed as a potential safe haven during market uncertainty, supported by a forward P/E ratio of around 11x and a consensus price target of $28.20 [12]