Conagra Brands Inc, posted its earnings and revenue for the quarter to Aug. 28, that surpassed the Street expectations.
The food company, and owner of brand such as Birds Eye, Health Choice, and Slim Jim, incurred a net loss of -$77.5 million, or -16 cents a share, compared to a net income of $235.4 million, or 49 cents a share in the year-ago quarter. Adjusted earnings for the quarter came in at 57 cents, beating the consensus of 52 cents (based on FactSet survey).
Revenue rose +9.5% from the year-ago quarter to $2.90 billion, exceeding the FactSet consensus of $2.85 billion. Grocery and snacks sales climbed +10.5%, and refrigerated and frozen sales rose +9.6%. International sales, however, were 1.3% lower year-over-year.
Conagra’s gross margin narrowed to 24.8% from 25.4%.
The company reaffirmed its full-year guidance. It expects about a +5% rise in organic net sales this year with adjusted operating margin at around 15%.
CAG saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 08, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 50 instances where the indicator turned negative. In of the 50 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 10, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on CAG as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
CAG moved below its 50-day moving average on May 10, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CAG crossed bearishly below the 50-day moving average on May 19, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CAG entered a downward trend on June 07, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CAG's RSI Indicator exited the oversold zone, of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where CAG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
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 Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (1.834) is normal, around the industry mean (10.035). P/E Ratio (20.408) is within average values for comparable stocks, (34.838). Projected Growth (PEG Ratio) (1.416) is also within normal values, averaging (2.662). Dividend Yield (0.039) settles around the average of (0.056) among similar stocks. P/S Ratio (1.344) is also within normal values, averaging (29.349).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. CAG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (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 Profit vs. Risk Rating rating for this company is (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 80, 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
A.I.dvisor indicates that over the last year, CAG has been closely correlated with SJM. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if CAG jumps, then SJM could also see price increases.