Conagra Brands Looks Bullish on Robust Growth Drivers

09:28 11/25/2017

Conagra Brands, Inc. CAG  was upgraded by a notch to a Zacks Rank #2 (Buy) on Nov 22. Per the Zacks model, companies with a Zacks Rank #2 are likely to perform better than the broader market in the next two to three months.

Over the last three months, Conagra's shares CAG , have gained of 3.9%, as against the industry 's decline of 2%.

Factors Behind the Upside

Stronger demand for on-trend brands such as Hunts, Peter Pan and Healthy Choice is expected to boost Conagra's aggregate revenues in the quarters ahead. Moreover, ongoing efforts made to launch new products and grab a large share of market demand are anticipated to strengthen top-line results, going forward. For instance, the Power Bowls rolled out this May and the new varieties of Pam Spray Pumps launched this September would assist in boosting Conagra's near-term sales.

The company anticipates to improve its profitability on the back of stronger revenues, ongoing volume strategy, sturdier supply-chain productivity and price mix enhancements. Meanwhile, Conagra believes that these factors would continue to drive its margin growth by nearly 32% by the end of fiscal 2020. Moreover, wider margins, increased share repurchase and lowered interest expense (as a result of reduced debt burden) are expected to strengthen earnings in the quarters ahead. Conagra's earnings per share are projected to improve by 7% in the next three to five years.

Additionally, Conagra is consistently restructuring its business portfolio through disciplined mergers and acquisitions, and divestments of unwanted assets. To this end, the divestiture of J.W. Swank and Spicetec Flavors & Seasonings businesses (completed in July 2016) is expected to continue boosting the company's profitability over the long run. Notably, Conagra believes Wesson brand's spin-off will also complement its portfolio restructuring strategy.

Furthermore, strategic buyouts of fast-growing meat snack brands like Duke's and BIGS (closed in April 2017) as well as Angie's Artisan Treats, LLC acquisition (closed in October 2017) is likely to underpin Conagra's competency in the near term.

Conagra CAG  is committed toward its shareholders and augments their returns through lucrative dividend and share buyback programs. Why not u add something abt dividend or share buybacks here.

Over the last 60 days, Zacks Consensus Estimate for the stock has moved north for both fiscal 2018 and 2019, reflecting positive sentiments.

Conagra Brands Honors Nine Facilities Achieving 95 Percent Waste Diversion As Zero Waste Champions

In conjunction with America Recycles Day, a day created to raise awareness around recycling and keeping materials out of our landfills, Conagra Brands, Inc. CAG , is honoring employees' commitment to reducing waste through its Zero Waste Champion Awards. Given to facilities that have redirected more than 95 percent of materials that would have otherwise been sent to landfills, the Zero Waste Champion Awards are an integral part of Conagra's zero waste strategy. This year nine facilities have been awarded and with their efforts, Conagra has achieved an 81.7 percent landfill diversion rate in the 2017 fiscal year.

"Waste reduction is critically important our company and we are dedicated to making improvements throughout our operations as part of our zero waste strategy," said Gail Tavill, vice president, sustainable development, Conagra Brands. "Our Zero Waste Champions exemplify this commitment and demonstrate how employees are taking ownership to drive maximum use of material resources."

Conagra Brands' zero waste strategy focuses on strategically reducing the amount of waste generated in our facilities and avoiding the need to transport valuable materials for discard in landfills. By characterizing materials that don't make it into finished goods as "by-products" instead of "waste", we create a culture that allows a shift in thinking away from disposal and towards value creation. Many by-products of food preparation are highly valued as animal feed, source material for recycling, energy recovery or composting, or sometimes even suitable for donation to feed people when safe and properly handled.

Conagra Brands 2017 Zero Waste Champion award winners include: Dresden, Canada; Hamburg, Iowa; Irapuato, Mexico; Kent, Washington; Lake View, Iowa; Maple Grove, Minn.; Menomonie, Wis.; Oakdale, Calif.; Waterloo, Iowa.

About Conagra Brands

Conagra Brands, Inc. CAG , headquartered in Chicago, is one of North America's leading branded food companies. Guided by an entrepreneurial spirit, Conagra Brands combines a rich heritage of making great food with a sharpened focus on innovation. The company's portfolio is evolving to satisfy people's changing food preferences. Conagra's iconic brands, such as Marie Callender's®, Reddi-wip®, Hunt's®, Healthy Choice®, Slim Jim® and Orville Redenbacher's®, as well as emerging brands, including Alexia®, Blake's®, Frontera® and Duke's®, offer choices for every occasion. For more information, visit

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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