NYSE:CAG

ConAgra Foods (CAG)

14.33
-0.51 (3.41%)
as of Jul 23, 2026, 4:42:38 pm Market Open.
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Investor Insights
star iconJul 23, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

ConAgra Foods (CAG-N) is currently trading at a price-to-earnings ratio of 8.5x for 2027, which some experts view as attractive considering its well-managed operations and strong product line. Despite this, there are concerns about the high 7.7% dividend yield that may signal underlying issues, with some analysts urging caution due to potential down earnings as the company approaches its next report. A single strong performance in the upcoming quarter could turn around the stock's negative trajectory, although one expert highlights a lack of growth, exacerbating skepticism around the sustainability of high dividends. Overall, while ConAgra has solid brands that generate revenue, the overall lack of growth and expectations of disappointing earnings cast a shadow over its prospects.

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Consensus
Cautious
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Valuation
Undervalued
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GeneralFoods, GFD
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly CAG is a $16 billion consumer packaged food company operating in the US. It’s a steady-Eddy performer that trades at 14x earnings compared to peers at 54x. It trades with a PEG ratio of 1.95 – showing modest growth opportunities and it is valued at 2x book. It pays a nice dividend, backed by a payout ratio of under 40% of cash flow. Sales surged during the pandemic, but have stabilized at levels higher than pre-pandemic times. We would buy this with a stop loss at $30, looking to achieve $42 – upside potential over 23%. Yield 3.24% (Analysts’ price target is $39.18)
DON'T BUY

He bets their frozen food sales are strong because of stay-at-homers, but it yields only 2.4% and is cheaper than peer Pepsico. He's on the sidelines because it lacks longer-term consistency. They report Thursday.

PARTIAL BUY

Arguably one of the leaders in the tier 2 brands. Made a huge acquisition in 2012, which hasn’t worked out well. Have had several write-downs since then because of that, and have had to reduce prices to increase sales. As a result, margins have been hammered. Over the last year or so, the stock has done quite well because a private equity firm stepped in. The company has indicated 10% year-over-year EPS growth over the next 3 years. Not a bad time to start some buying, but be careful in the short term. The stock had a considerable run up, and on a valuation basis it is not cheap. As a buyer, take a half position and wait for a pullback.

PARTIAL SELL

Thinks they have done all the right things with the acquisitions they have been making and their focus. It is all ceramic strategic assets. Within the food business, there is a secular push towards people wanting to lead healthier lives. If you own, consider taking some profits.

COMMENT

Just made a major acquisition. His issues with this and others in this area are that there is inflation pressure on the cost side. They are not getting a follow through on the pricing side so their margins are being squeezed and he fears for flattish earnings growth. 2.9% dividend yield.

BUY
Reasonable PE, a little more debt than he would like but it is on his watch list.
PAST TOP PICK
(Was a Top Pick April 28/03. Up 2 1/2%.) Still likes. Still remains at the bottom of its 20-year range. 2 X book value.
WEAK BUY
Very solid company, but not too interested in this one.
PAST TOP PICK
(Was a top pick on Mar 19/03. Up 8%.) Still likes.
TOP PICK
Got hit when Ahold cameunder investigation. Was oversold. Starting to come back.
TOP PICK
This is a top pick for a short trade only based on an expected trading bounce.
Showing 16 to 26 of 26 entries