Conagra Stock Story

CAG

Stock

USD 34.43 0.16 0.47%

Macroaxis Story

Conagra Brands is scheduled to announce its earnings tomorrow. While many traders are getting carried away by overanalyzing consumer defensive space, it is reasonable to digest Conagra Brands under the latest economic conditions. We will evaluate why we are still optimistic in anticipation of a recovery.

Published over three weeks ago

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Is Conagra (NYSE:CAG) outlook optimistic based on the latest analyst consensus?

Conagra Brands has a performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.7204, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Conagra's beta means in this case. As returns on the market increase, Conagra Brands returns are expected to increase less than the market. However, during the bear market, the loss on holding Conagra Brands will be expected to be smaller as well. Although it is important to respect Conagra Brands historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Conagra Brands technical indicators, you can presently evaluate if the expected return of 0.0276% will be sustainable into the future. Conagra Brands right now shows a risk of 1.68%. Please confirm Conagra Brands jensen alpha, maximum drawdown, semi variance, as well as the relationship between the sortino ratio and potential upside to decide if Conagra Brands will be following its price patterns.

What is the right price you would pay to acquire a share of Conagra Brands? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

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What is happening with Conagra Brands this year

Annual and quarterly reports issued by Conagra Brands are formal financial statements that are published yearly and quarterly and sent to Conagra stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Conagra Brands often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How does Conagra utilize its cash?

To perform a cash flow analysis of Conagra Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Conagra Brands is receiving and how much cash it distributes out in a given period. The Conagra Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Conagra Brands Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 1.18 Billion

Breaking down Conagra Brands Indicators

Earning per share calculations of Conagra Brands is based on official Zacks consensus of 5 analysts regarding Conagra Brands' future annual earnings. Given the historical accuracy of 89.3%, the future earnings per share of the company is estimated to be 2.44 with the lowest and highest values of 2.35 and 2.5, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Conagra a risky opportunity?

Let's check the volatility. Conagra is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Conagra (NYSE:CAG) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of a Conagra Brands stock makes you a part-owner of that company.

Conagra Brands Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Conagra Brands. The Conagra consensus assessment is calculated by taking the average estimates from all of the analysts covering Conagra Brands

Strong Buy

Hold

Strong Buy	1	12.5
Buy	0	0.0
Hold	7	87.5
Sell	0	0.0
Strong Sell	0	0.0

Possible August correction of Conagra?

The standard deviation is down to 1.63 as of today. Conagra Brands has relatively low volatility with skewness of -2.07 and kurtosis of 10.36. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Conagra Brands' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Conagra Brands' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Conagra Brands Implied Volatility

Conagra Brands' implied volatility exposes the market's sentiment of Conagra Brands stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Conagra Brands' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Conagra Brands stock will not fluctuate a lot when Conagra Brands' options are near their expiration.

Our Conclusion on Conagra Brands

Although some other firms within the packaged foods industry are still a little expensive, even after the recent corrections, Conagra Brands may offer a potential longer-term growth to shareholders. Taking everything into account, as of the 13th of July 2022, our analysis shows that Conagra Brands follows the market closely. The firm is undervalued and projects below average chance of distress for the next 2 years. Our primary 90 days buy-hold-sell recommendation on the firm is Strong Buy.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

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 Ellen Johnson 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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