Packaged goods company Conagra Brands (NYSE:CAG) is scheduled to report its second-quarter Fiscal 2023 results on January 5, before the market opens. The company’s inflation-induced higher pricing strategy and vast offerings in the frozen foods category might have supported its performance in Q2.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Furthermore, Conagra is expected to have benefitted from the ease in supply-chain issues during the quarter. In the Q1 earnings call, CEO Sean Connolly stated, “We continued to deliver improved service and productivity as we navigate ongoing inflationary pressures and industry-wide supply chain challenges.”
The Street expects Conagra to post earnings of $0.66 per share in Q2, slightly higher than the prior-year period’s figure of $0.64 per share. Meanwhile, revenue expectations are pegged at $3.3 billion, representing a year-over-year jump of 6.5%.
Ahead of Conagra’s Q2 earnings release, Bank of America Securities analyst Bryan Spillane raised CAG’s price target to $39 from $38, while maintaining a Hold rating on the stock.
Is CAG Stock a Buy or Sell?
Overall, Conagra has a Moderate Buy consensus rating based on five Buys, three Holds, and one Sell. The average CAG stock price target of $39.67 implies 2.2% upside potential. The stock has gained nearly 16% in the past three months.
Ending Thoughts
The uncertain macroeconomic backdrop continues to affect companies across sectors. However, Conagra may be able to pass on high inflation costs to its customers as they look for more options to eat at home. The company’s efforts to increase market share in the snacking and frozen categories with new product launches are encouraging.
