We have issued an updated research report on ConAgra Foods, Inc. CAG on Dec 23. The company is one of the leading food companies in North America, with its brand present in 97% of American households.
ConAgra Foods’ most striking feature is its diversified product portfolio, with popular brand names like Consumers find Banquet, Chef Boyardee, Egg Beaters, Marie Callender’s, Orville Redenbacher’s, Peter Pan and Reddi-wip, among others. Such an extensive brand line-up has helped the company expand its customer base in the grocery retailers, restaurants and other foodservice establishments.
ConAgra Foods is diligently working toward improving its top line, margin and profits through product innovations, efficient marketing strategies and implementation of various cost-saving programs. Also, the company has resorted to meaningful acquisitions as well as disposition of non-profitable businesses in order to boost profits. In this regard, the acquisition of All Natural Foods (in May 2015) and the divestiture of Private Brand segment (likely to close in early 2016) are worth mentioning.
In addition, ConAgra Foods is committed toward rewarding its shareholders through dividend payments. In the first half of fiscal 2016 (ending May 2016), the company distributed dividends totalling $215 million.
With a market capitalization of $18.4 billion, ConAgra Foods currently carries a Zack Rank #2 (Buy). The above-mentioned positives clearly justify the company’s high investment value. ConAgra Foods’ earnings are anticipated to grow 6.6% over the near five years, while over the last 60 days, the Zacks Consensus Estimate for the stock has increased 1.8% to $2.25 per share for fiscal 2016 and 4.3% to $2.42 per share for fiscal 2017.
Some other stocks worth considering in the food industry are B&G Foods Inc. BGS, The Chefs' Warehouse, Inc. CHEF and Ingredion Incorporated INGR. While B&G Foods sports a Zacks Rank #1 (Strong Buy), both The Chefs' Warehouse and Ingredion Incorporated carry a Zacks Rank #2.
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