Should You Add Conagra (CAG) To Your Portfolio Right Now?
Zacks Investment Research | May 16, 2018 10:33PM ET
Adding Conagra Brands, Inc. (NYSE:CAG) to your portfolio will be a promising investment move, at the moment. In the last 60 days, the company’s Zacks Consensus Estimate for earnings has moved up 4.6% to $2.05 and 5.5% to $2.31 for fiscal 2018 (ending May 2018) and fiscal 2019, respectively. This Zacks Rank #2 (Buy) stock is poised to grow on the back of brand modernizing moves, stronger innovation, buyouts, strategic divestments and lower tax rates.
Why the Stock is Performing Well?
Value-over-Volume Strategy: Conagra is currently following a unique value-over-volume strategy, through which it is prioritizing price/mix metric and margins, instead of volumes. In sync with this, the company ensures that its robust volume performance is driven by stronger innovation, as well as new merchandizing, distribution, and consumer trail-related investments, instead of price discounts.
Top-Line Prospects: Sturdy demand for premium brands like Healthy Choice, Marie Callender, Slim Jim, Duke's, Bigs and Frontera is expected to boost Conagra’s revenues in the quarters ahead.
Moreover, new investments planned to strengthen its frozen business and brand renovation initiatives undertaken to improve snacks business would likely aid in improving Conagra’s top-line results in the upcoming quarters.
Per our estimates, the company’s projected year-over-year sales growth is 1.7% for fiscal 2019.
Over the last three months, shares of the company have rallied 4.2%, as against the 9.2% loss recorded by the Zacks Investment Research
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