Conagra Brands, Inc. (CAG) is a leading packaged foods company headquartered in Chicago, Illinois. Valued at a market cap of $12 billion, the company specializes in producing and marketing a diverse portfolio of well-known consumer food brands across categories like frozen, refrigerated, and shelf-stable products. Its iconic brands include Healthy Choice, Hunt's, Birds Eye, Slim Jim, and Orville Redenbacher's, among others.
Shares CAG have significantly underperformed the broader market over the past 52 weeks. CAG has fallen 12.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.8%. In 2025, shares of CAG are down 9.9%, compared to SPX’s 3.4% gains on a YTD basis.
Narrowing the focus, CAG has also trailed the Consumer Staples Select Sector SPDR (XLP). The exchange-traded fund has gained about 7.6% over the past year and 1.1% in 2025.
Conagra Brands has faced a challenging year, underperforming the broader market as the escalating inflation in key commodities like meat, eggs, and sweeteners have significantly strained margins, forcing the company to revise its inflation outlook and lower profit projections. To combat declining volumes and fierce competition from private-label brands, Conagra amplified promotional efforts and price reductions, further compressing profitability. Additionally, supply chain disruptions added to the headwinds, impacting operational efficiency, while strategic initiatives, such as exploring the sale of underperforming brands, introduced uncertainty.
On Dec. 19, CAG shares dwindled over 2% after reporting its Q2 earnings report. While the company surpassed market expectations, sales slipped slightly year-over-year to $3.2 billion. Conagra also revised its guidance, lowering its adjusted EPS outlook to $2.45–$2.50 from the previous $2.60–$2.65. Additionally, the forecast for the adjusted operating margin was reduced to approximately 14.8%, down from the earlier range of 15.6%–15.8%.
For the current fiscal year, ending in May, analysts expect CAG to report an EPS decline of 7.9% to $2.46 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters, while missing on another occasion.
Among the 15 analysts covering CAG stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings and 12 “Holds.”
This configuration has been fairly stable over the past months.
On Jan. 24, Stifel Financial Corp. (SF) analyst Matthew Smith reduced the price target for Conagra Brands from $30 to $28 while maintaining a “Hold” rating on the stock. The firm attributes the sector's valuation discount to historical levels, weak revenue projections, and reinvestment pressures that impact margins. Although food stocks appear attractively valued compared to historical benchmarks, Stifel remains cautious due to uncertainties surrounding revenue growth in 2025.
The mean price target of $29.20 represents a 16.8% upswing to CAG’s current price levels. The Street-high price target of $33 suggests an upside potential of 31.9%.
