Food giant Conagra Brands has turned a corner. Its latest quarterly report was its best in a year amid soaring food prices. Many analysts expect food prices to eventually moderate but for now Conagra stock could benefit big time from the price increases.
When looking for the best stocks to buy and watch, focus on those with rising relative price strength. One stock that fits that bill is Conagra stock. On Tuesday its Relative Strength (RS) Rating shot up 10 points to 85. The 85 RS Rating means Conagra stock has outperformed 85% of all stocks over the past year.
Conagra Stock Climbing The Ladder
Making it even more tasty; its rise to an 85 RS Rating puts it in a higher quality group of stocks. Market research shows that the best stocks tend to have an RS Rating above 80 in the early stages of their moves. Conagra just rocketed above that benchmark.
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The Chicago-based company makes shelf-stable and frozen foods, as well as ingredients and agricultural products. Health Choice, Hunts canned tomatoes, Vlasic pickles and Orville Redenbacher's popcorn are a few of its many brands.
Recent Turnaround To Pole Position
In terms of top and bottom line numbers, Conagra Brands has posted three quarters of increasing earnings growth rate. Or, put another way, its growth rate fell less in the prior two quarters, and it jumped last quarter. Sales growth has also increased during the same period. Last quarter, Conagra reported a 20% increase in adjusted EPS to 65 cents per share on a 6% increase in sales to $2.91 billion.
On Tuesday Conagra stock slid 2% amid market consolidation, to 34.12. Conagra Brands is building a consolidation with a 37.07 buy point. See if the stock can clear the breakout price in volume at least 40% above average.
Conagra Brands earns the No. 8 rank among its peers in the Food-Packaged industry group. Lamb Weston and PepsiCo are also among the group's highest-rated stocks.
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