Shares of Conagra Brands climbed Thursday, after reporting first quarter earnings that exceeded analysts’ expectations.
The owner of food brands including Birds Eye, Healthy Choice, Slim Jim and others reported adjusted earnings of 43 cents a share, compared to analysts' expectations of 39 cents.
Net income of $173.8 million, or 36 cents a share, came in lower compared to the year-ago quarter’s $178.2 million, or 45 cents a share.
Sales increased to $2.39 billion (from the prior year's $1.82 billion), but missed Wall Street's estimate of $2.48 billion.
Chief Executive Sean Connolly indicated that although Conagra’s Foodservice and International businesses experienced unexpected softness on sales for the quarter, they surpassed its operating profit and margin expectations.
For full year 2020, Conagra projects net sales growth of 13.5% to 14%, and adjusted earnings per range of $2.08 to $2.18, reiterating its guidance.
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CAG's Aroon Indicator triggered a bullish signal on September 02, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 196 similar instances where the Aroon Indicator showed a similar pattern. In 101 of the 196 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 52%.
The RSI Indicator entered the oversold zone -- be on the watch for CAG's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.00% 3-day Advance, the price is estimated to grow further. Considering data from situations where CAG advanced for three days, in 140 of 282 cases, the price rose further within the following month. The odds of a continued upward trend are 50%.
CAG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on September 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CAG as a result. In 49 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 57%.
The Moving Average Convergence Divergence Histogram (MACD) for CAG turned negative on August 31, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 31 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
CAG moved below its 50-day moving average on September 10, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CAG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Tickeron Valuation Rating of 5 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.110) is normal, around the industry mean (5.785). P/E Ratio (10.124) is within average values for comparable stocks, (35.226). CAG's Projected Growth (PEG Ratio) (10.859) is very high in comparison to the industry average of (2.737). Dividend Yield (0.083) settles around the average of (0.060) among similar stocks. P/S Ratio (0.624) is also within normal values, averaging (4.731).
The Tickeron Price Growth Rating for this company is 51 (best 1 - 100 worst), indicating steady price growth. CAG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 96 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 97 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CAG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a maker of processed and packaged foods
Industry FoodMajorDiversified