Conagra Brands Faces Challenges Amidst Broader Market Gains

Chicago-based Conagra Brands, Inc. (CAG), a notable player in the consumer-packaged goods sector, boasts a market capitalization of around $11 billion. The company operates through four distinct segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.

Stock Performance Overview

Over the past year, shares of Conagra Brands have underperformed relative to the broader market. CAG has declined by 25.1%, whereas the S&P 500 Index ($SPX) has increased by 8.6%. Additionally, CAG’s year-to-date performance shows a 17.1% drop, contrasting with SPX’s 4.3% decline.

Further analysis reveals that Conagra has also lagged behind the Consumer Staples Select Sector SPDR Fund (XLP), which recorded a 6.2% gain over the same 52-week period and a 3.7% year-to-date return.

Recent Financial Results

On April 3, following the release of its Q3 2025 results, Conagra Brands’ stock rose 1.5%. The company reported a 6.3% decline in net sales year-over-year, totaling $2.8 billion, attributed to decreases in all its segments. Furthermore, CAG’s adjusted EPS (earnings per share) of $0.51 indicated a 26.1% decline compared to the same quarter last year. Looking forward, Conagra anticipates an approximately 2% decline in organic net sales for fiscal 2025 relative to fiscal 2024, projecting adjusted EPS around $2.35.

Analysts’ Perspectives

For the fiscal year ending in May 2025, analysts expect CAG’s adjusted EPS to drop 12.4% year-over-year, reaching $2.34. The company’s earnings surprise history has been mixed; it exceeded consensus estimates in two of the last four quarters while missing in the other two.

Among 16 analysts covering the stock, the consensus rating stands at “Hold,” based on two “Strong Buy” ratings and 14 “Hold” ratings. This reflects a slightly less optimistic view compared to three months ago, when there were three “Strong Buy” ratings.

On May 8, Citi analyst Thomas Palmer adjusted CAG’s price target to $25 while maintaining a “Neutral” rating. As of the latest information, Conagra Brands is trading below the average price target of $27.25, with a Street-high target of $31 indicating a potential upside of 34.8%.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All data is provided for informational purposes. For more details, please view the Barchart Disclosure Policy here.

The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.