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Opinions Mohsin Bashir
ConAgra FoodsCAGPARTIAL SELLJun 21, 2016
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentPremium contentHe bets their frozen food sales are strong because of stay-at-homers, but it yields only 2.4% and is cheaper than peer Pepsico. He's on the sidelines because it lacks longer-term consistency. They report Thursday.
Arguably one of the leaders in the tier 2 brands. Made a huge acquisition in 2012, which hasn’t worked out well. Have had several write-downs since then because of that, and have had to reduce prices to increase sales. As a result, margins have been hammered. Over the last year or so, the stock has done quite well because a private equity firm stepped in. The company has indicated 10% year-over-year EPS growth over the next 3 years. Not a bad time to start some buying, but be careful in the short term. The stock had a considerable run up, and on a valuation basis it is not cheap. As a buyer, take a half position and wait for a pullback.
Just made a major acquisition. His issues with this and others in this area are that there is inflation pressure on the cost side. They are not getting a follow through on the pricing side so their margins are being squeezed and he fears for flattish earnings growth. 2.9% dividend yield.
Ross Healy
Thinks they have done all the right things with the acquisitions they have been making and their focus. It is all ceramic strategic assets. Within the food business, there is a secular push towards people wanting to lead healthier lives. If you own, consider taking some profits.