CAG: ConAgra Foods Limited Stock Analysis

ConAgra Foods Inc (CAG) is a primarily North American food company which has three
segments namely Consumer Foods, Commercial Foods and Private Brands. The first segment
Consumer Foods provided branded food products in numerous categories namely meals, entrees,
sides, snacks and condiments.
Numerous retail channels such as froze, refrigerated and shelf stable temperature classes are part
of this segment. This includes principal brands include Banquet, Blue Bonnet, Chef Boyardee,
Egg Beaters, Healthy Choice and Slim Jim.
Commercial Foods segment provides frozen and sweet potato items, spices, bakery goods, grain
products, food service, manufacturing and industrial customers such as Alexia and Lamb
Weston.
Private Brands segment offers private brands and customised foods in numerous retail channels
including bars, condiments, pasta and retail bakery products. ConAgra Foods Inc was founded
in the year 1919. It is headquartered in Omaha in Nebraska.
Analysis of Results
ConAgra Foods is a profitable capital deployment program with proceeds from successful
divestiture of Private Brand segment. This will improve shareholder utility in the long term.
Proceeds from the spin off will reduce company's debt burdens in association with balance sheet
deleveraging.
Company margins will increase over time in association with more efficient price/mix,
operational efficacy, increased volumes and enhanced input prices. Top line through deliberate
acquisitions in the TBR quarters. Analysts remain cautious on stock evident from downward
revision.
Estimates from ConAgra Foods fell 11.1 percent to US $2.08 per share for 2016. It will reach 0.4
percent to $2.41 for 2017. Downward estimate revisions are linked to massive competition
associated with market share loss or price related problems and anticipation of input supply.

Stock of ConAgra Foods Inc (NYSE:CAG) rose by $0.09 and has US $75.86 target or 66
percent above previous share price. Gaps reach support level and are a tradeable event.
Analysts are expecting earnings on June 30, 2016 before the open, expecting $0.52 EPS down
11.86% or $0.07 from previous year's $0.59 per share. CAG profits will be US $224.85 million
for 22.76 P/E if US $0.52 EPS becomes attainable.

Following a US $0.68 actual EPS reported by ConAgra Foods Inc for the earlier quarter,
negative EPS growth is now forecasted by Wall Street.
Analysts are stating that early consensus on ConAgra Foods is a Moderate Buy and average
price target is around US$49.40. This shows an upside of 0.04% and data is associated with
analysts rating the company over the past three months, according to FranklinIndependent.
Conclusion
The institutional sentiment rose to 0.96 in 2016 Q1. It fell 0.01 from 0.97 in Q4 of 2015. This is
a positive sign and analysts are associating it with steady income gains. So, this is a good
candidate for investors who want stable returns.
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