ConAgra Brands: Downtrend halted. Time to invest?

Last Updated: 22. Januar 2024By

ConAgra Brands, a leading US food corporation, is one of the largest food manufacturers in the US market. The portfolio includes a wide range of foods, including oils, sauces, frozen and meat dishes, pasta, hot chocolate, and jams. The products are distributed in supermarkets, restaurants, fast food outlets, and through catering companies.

Revenue and profit remain below previous year levels For the last quarter, the company reported a revenue of $3.21 billion compared to $3.31 billion the year before. Net profit was $286.2 million compared to $381.9 million a year ago.

Half-year figures also decline In the six months, revenue was $6.11 billion compared to $6.22 billion in the previous year. Net profit was $605.9 million compared to $304.4 million a year ago. Earnings per share amounted to $0.60 compared to $0.80 the previous year.

Agriculture stock: P/E ratio now only 10.8 The agriculture company now expects a decline in annual organic net sales of 1% to 2%, previously the forecast was for about 1% growth. ConAgra Brands expects adjusted earnings per share for the year between $2.60 and $2.65, compared to the previous forecast of $2.70 to $2.75. Based on the earnings estimate for this year, the P/E ratio is only 10.8.

Downtrend stopped: Should you buy now? Conclusion: A look at the stock performance shows that the downtrend that has been going on since January 2023 has been stopped. The agriculture stock has been trading sideways since the beginning of the year. Are analysts convinced of a turnaround? Analysts do not seem entirely convinced. Only 2 out of 17 analysts recommend buying, 15 recommend holding, and one analyst would reduce their shares. The average analyst price target is $29.90 – not exciting potential for you as an investor. Some analysts believe $33 is possible. At least in the next year, profits are expected to increase slightly. This will bring the P/E ratio down to only 10.1.