Why Conagra can be a highly profitable shelter News ad

On the day when many investors did not see anything but red, Conagra Brands Inc. NYSE: CAG He controlled the little one Profit is about 1.5%.

This happened, despite the fact that the company was absent at the top and, as a result, in the income report in the third quarter of 2024.

With tariff fears, accelerating the rotation of the sector, Conagra can get a fair wind from the flight to the main products for consumers.

CAG’s futures fell sharply, that investors felt when the market opened.

Investors had to find out what to do with some disappointing numbers:

• Pure sales of 2.8 billion dollars. The United States decreased by 6.3%.
• The operating margin fell to 8.4%, a decrease in the point 712-bazis

This does not mean that the report was complete leaching. The revenue of 2.84 billion dollars was slightly lower than the expected 2.92 billion dollars. USA, and ConAGRA announced the profit (EPS) in the 51st Center, which was on Penny, below the score. In almost every category, the company told investors the same story. That is, loaded consumption supplies. The volume also remains under pressure from the constant restrictions of the supply chain.

This is a constant story for Conagra, when consumers turn to brands of a private brand to compensate for the influence of inflation. The company’s advanced management throughout the year suggests that there will be more disadvantages. The management expects that a net reduction in sales is approximately 2% with a adjusted act of $ 2.35, compared with $ 2.67 in the previous year.

All this explains why CAG shares decreased by about 19% from the 52-week maximum, which he made in October 2024. However, when flying to a safe place, investors should investors see that the post-receipt increases as the beginning of a wider step higher?

GLP-1 products can move the needle

At the end of 2024, Conagra announced that since January 2025, the selected lines of frozen eating choice of choice would display the “on the way” icon, indicating that they were GLP-1 friendly. This was the first company to call GLP-1 friendly to its packaging.

Consumers and investors know what effect the GLP-1 drugs have on the lives of patients and income of many packed food companies. This line of products with a high protein content, with a low calorie content and a good source of fiber.

Despite the fact that Conagra did not tear out sales from these products specifically, she noted that she continues to hold most of the volume in the category with one composition of $ 6.4 billion, where these products fall. The volume in just increased increased by 0.6% in annual calculusNotes three consistent quarters of retail growth in frozen products – a category that continues to exceed a wider edible market.

This volume has arrived at a time when the company still feels the influence of deliveries on frozen dishes containing chicken and frozen vegetable products.

Investors can react excessively to tariff fears

The provision of a disappointing report on income the day after the Trump administration set out an extensive tariff policy can be considered a bad time. However, Nothing in the announcement will probably affect ConagraWhich previously said that previously declared tariffs for steel and aluminum will have a minimal impact on the company’s business.

This means that although prices can grow in some areas, they will not necessarily rise for companies such as Conagra. This would be welcomed for investors who listened to how the company management was talking about how consumers continue to choose store brands in order to save money.

The report confirmed that this trend remains untouched; Nevertheless, this last round of tariffs is unlikely to add additional price pressure on Konagu.

CAG Stock can be a solid high -profit party

Konagra will not be the first action to be considered by investors in the bull market.

But consumer main actions shine during uncertainty. And this is especially true in relation to shares, such as CAG, which are supplied with Attractive dividends, which currently give 5.2%.

Combine this with a forwarding price for profit (p/e) about 11 times, and investors have an ingredients for a solid place to parish their money in the short term.

Promotions currently Search for support around its 50-day simple sliding medium.

The consensus target price of analysts in the amount of $ 28.20 corresponds to the maximum of the shares of 2024.

Before considering Conagra brands, you will want to hear it.

Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their customers to buy now before the wider market wins … and Conagra Brands was not on the list.

While Conagra Brands currently has a retention rating among analysts, analysts with the highest rating believe that these five promotions are better buying.

View five shares here

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