Conagra Brands Pummeled by Wall Street After Recent Earnings Report

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Conagra Brands Stock Fair Value – CONAGRA BRANDS ($NYSE:CAG) was pummeled by Wall Street after their recent earnings report. The company’s stock took a nosedive after it was revealed that their earnings were not as strong as expected. Wall Street analysts were quick to point out that Conagra’s recent acquisitions may have been the reason for their weaker than expected performance. Conagra’s CEO, Sean Connolly, was quick to defend the company’s acquisitions, saying that they were made with the long term in mind.

Connolly also said that Conagra is committed to delivering value for shareholders, and that they will continue to focus on improving their operations. Despite the negative reaction from Wall Street, Conagra’s stock is still up significantly from where it was a year ago. The company has made a number of smart acquisitions and is in a strong position to continue growing in the future.

Price History

Wall Street analysts had been expecting Conagra to report higher sales and earnings, so the company’s results fell short of expectations. Conagra’s stock opened at $34.90 on Thursday, and closed at $34.40, down 1.6% from its previous closing price of $34.90.

VI Analysis – Conagra Brands Stock Fair Value Calculator

The intrinsic value of a stock is a measure of its long-term potential. A company’s fundamentals, such as its earnings power, growth prospects, and dividend yield, are key factors in determining its intrinsic value. The VI app makes it easy to analyze a company’s fundamentals and calculate its intrinsic value.

The app’s “VI Line” tool shows that the intrinsic value of CONAGRA BRANDS shares is around $31.6. At its current price of $34.4, CONAGRA BRANDS stock is trading at a fair price that is slightly overvalued by 9%.

VI Peers

The company’s products are sold in more than 100 countries and are marketed under well-known brands such as Healthy Choice, Hunt’s, Slim Jim, Snack Pack, and Vlasic. Conagra’s competitors include JM Smucker Co, General Mills Inc, and McCormick & Co Inc.

– JM Smucker Co ($NYSE:SJM)

The J. M. Smucker Company has a market capitalization of $15.57 billion as of 2022 and a return on equity of 7.19%. The company manufactures and markets branded food and beverage products, including coffee, peanut butter, shortening and oils, frozen snacks, fruits and vegetable snacks, and health and wellness products.

– General Mills Inc ($NYSE:GIS)

General Mills Inc is a food company that manufactures and sells branded consumer foods worldwide. The company has a market cap of 48.09B as of 2022 and a Return on Equity of 20.18%. The company’s products include cereals, snacks, yogurt, baking mixes, and more.

– McCormick & Co Inc ($NYSE:MKC)

McCormick & Co Inc is a food company that manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavoring products. The company has a market cap of 22.46B as of 2022 and a return on equity of 13.21%. The company’s products are sold in over 180 countries and territories.

Summary

Given the company’s recent struggles, is Conagra a good investment at current levels? Let’s take a closer look at Conagra to see if it’s worth investing in right now. Conagra is one of the largest packaged food companies in the United States, with a wide range of well-known brands including Hunt’s, Chef Boyardee, Healthy Choice, Orville Redenbacher’s, and Peter Pan. Conagra has been going through a transformation in recent years, divesting itself of slower-growth businesses and acquiring faster-growing ones.

The company has also been focused on improving its margins through cost-cutting initiatives. Looking ahead, Conagra is expected to benefit from continued growth in the U.S. packaged food industry, as well as from its own initiatives to drive sales and margin expansion. Given Conagra’s strong expected earnings growth, as well as its improving margin profile, the stock looks attractive at current levels.