ConAgra Story

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Whilst many millenniums are getting more into consumer defensive space, it makes sense to digest ConAgra Brands against current trends within the economy. As we have suggested previously, ConAgra Brands is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. ConAgra Brands moves indifferently to market moves. The returns on investing in ConAgra Brands and the market returns of the last few months appear uncorrelated. Sound technical and fundamental indicators of the firm may indicate signs of shorter-term price drift for shareholders. ConAgra Brands is scheduled to announce its earnings today. The next earnings report is expected on the 17th of December 2020.
Published over three weeks ago
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Will ConAgra Brands (NYSE:CAG) continue to dip in November?
The company's average rating is Buy from 12 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on ConAgra Brands market sentiment investors' perception of the future value of ConAgra. Let us look at a few aspects of ConAgra technical analysis. About 88.0% of the company shares are held by institutions such as insurance companies. The book value of ConAgra Brands was currently reported as 16.17. ConAgra Brands has Price/Earnings To Growth (PEG) ratio of 2.08. The entity last dividend was issued on the 3rd of August 2020. The firm had 2:1 split on the 10th of November 2016.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of ConAgra Brands. In general, we focus on analyzing ConAgra Brands stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build ConAgra Brands's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of ConAgra Brands's intrinsic value. In addition to deriving basic predictive indicators for ConAgra Brands, we also check how macroeconomic factors affect ConAgra Brands price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How important is ConAgra Brands's Liquidity

ConAgra Brands financial leverage refers to using borrowed capital as a funding source to finance ConAgra Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ConAgra Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between ConAgra Brands's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for ConAgra Brands, but it might be worth checking our own buy vs. sell analysis

Closer look at ConAgra Brands Mean Deviation

ConAgra Brands has current Mean Deviation of 1.09. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.

Mean Deviation 
 = 
SUM(RET DEV) 
 = 
1.09
SUM = Summation notation
RET DEV = Sum of return deviations of ConAgra Brands
N = Number of calculation points for selected time horizon
Let's now compare ConAgra Brands Mean Deviation to its closest peers:
CAG
K
LW
DTEA
FAMI
CAG1.0854377121212122
K0.86
LW2.0
DTEA4.03
FAMI3.88

Are you still doubtful about ConAgra Brands?

Jensen alpha is down to 0.17. It may indicate a possible volatility dip. ConAgra Brands has relatively low volatility with skewness of 0.09 and kurtosis of 3.9. However, we advise all investors to independently investigate ConAgra Brands to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on ConAgra Brands

Although other entities in the packaged foods industry are either recovering or due for a correction, ConAgra Brands may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 1st of October 2020, our analysis shows that ConAgra Brands moves indifferently to market moves. The firm is overvalued and projects close to average odds of financial distress for the next 2 years. Our final 30 days Buy-Hold-Sell recommendation on the firm is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of ConAgra Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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