Conagra Brands Beats Q1 Expectations, Stock Lags
Conagra Brands, Inc. (CAG), a leading North American packaged foods company with a market capitalisation of $8.2 billion, has reported better-than-expected financial results for the first quarter of 2026. The company's stock, however, has been underperforming compared to the broader stock market today and its peers.
CAG reported revenue of $2.63 billion and adjusted EPS of $0.39 for the quarter, surpassing analysts' expectations. Despite this positive news, Morgan Stanley's Megan Alexander maintained a 'Hold' rating on the stock, setting a price target of $21. The mean price target for CAG stands at $20.53, indicating a nearly 20% premium to its current price levels.
Over the past 52 weeks, CAG stock has dropped by 41.1%, significantly underperforming the S&P 500 Index's gain of 18.5%. Looking ahead, analysts expect CAG's adjusted EPS to decrease by 23.5% year-over-year to $1.76 for the fiscal year ending in May 2026. CAG operates across four segments: Grocery & Snacks; Refrigerated & Frozen; International; and Foodservice.
The consensus rating for CAG among 17 analysts is a 'Hold', with two 'Strong Buy' ratings and one 'Strong Sell'. Compared to the Consumer Staples Select Sector SPDR Fund (XLP), CAG shares have lagged behind, with a 41.1% drop against XLP's 6.1% dip over the past 52 weeks. Year-to-date, Conagra Brands' shares are down 38.3%, while the S&P 500 has increased by 15.1%.
Despite reporting better-than-expected financial results, Conagra Brands' stock has been struggling, with analysts maintaining a cautious stance. The company's underperformance compared to the broader stock market today and its peers suggests potential challenges in the current market conditions. Investors will closely watch CAG's progress as it navigates through the remainder of the fiscal year.
