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Conagra Brands (CAG): Assessing Valuation After a Tough Year for the Share Price

Simply Wall St · 2d ago

Conagra Brands (CAG) has been grinding through a tough stretch, with the stock sliding over the past year even as profits have inched higher. That disconnect sets up an interesting value discussion.

See our latest analysis for Conagra Brands.

Over the past year, Conagra’s weak share price return has contrasted with modest earnings progress, and the negative year to date share price return suggests sentiment has steadily cooled rather than sharply reversed.

If Conagra’s reset has you rethinking your watchlist, this could be a good moment to scout other consumer names and explore fast growing stocks with high insider ownership.

With shares down sharply even as earnings grind higher and the stock trades below analyst targets, investors face a key question: is Conagra now a mispriced value setup, or is the market already discounting limited future growth?

Most Popular Narrative: 15.1% Undervalued

With Conagra Brands last closing at $17.16 against a narrative fair value of $20.22, followers see a meaningful value gap opening up.

The stabilization of supply chain constraints, particularly in the latter half of next year, is expected to improve operational efficiencies and margins, benefiting overall earnings performance.

The incremental 53rd week in fiscal '26 presents an opportunity for additional revenue that could positively impact year over year comparisons, positively affecting earnings.

Read the complete narrative.

Curious how modest revenue contraction still supports a higher valuation? The narrative leans on margin resilience and a richer future earnings multiple to close that gap.

Result: Fair Value of $20.22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside depends on inflation and regulatory pressures staying contained, since sustained cost shocks or additive bans could quickly erode the margin story.

Find out about the key risks to this Conagra Brands narrative.

Build Your Own Conagra Brands Narrative

If you see things differently or prefer digging into the numbers yourself, you can quickly build a personalized view in just minutes using Do it your way.

A great starting point for your Conagra Brands research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.