|Bid||39.99 x 2200|
|Ask||40.24 x 4000|
|Day's range||39.99 - 40.46|
|52-week range||32.63 - 51.07|
|PE ratio (TTM)||46.57|
|Earnings date||19 Nov 2018 - 23 Nov 2018|
|Forward dividend & yield||1.40 (3.39%)|
|1y target est||37.00|
Wall Street analysts continue to have a favorable outlook on Conagra Brands (CAG) stock. They expect its recent acquisitions, higher net pricing, improving mix, and cost and productivity savings measures to drive its sales and earnings growth rate. A lower effective tax rate is also likely to cushion its earnings.
Conagra Brands (CAG) is slated to announce its first quarter of fiscal 2019 results on Thursday, September 27. Analysts expect it to sustain its sales and earnings growth momentum, but they expect the growth rate to decelerate, which could be a concern.
On September 19, Hormel Foods (HRL) was trading at a 12-month forward PE (price-to-earnings) ratio of 21.5x. However, the company is trading at a higher valuation multiple in comparison to peers. Tyson Foods (TSN) is trading at a 12-month forward PE ratio of 10.2x. Pilgrim’s Pride (PPC), Campbell Soup (CPB), and Conagra (CAG) are trading at 8.2x, 16.2x, and 16.3x, respectively, as of September 19.
Hormel Foods’ (HRL) current dividend yield is 1.9% based on the closing price of $39.66 as of September 19. In comparison, Tyson Foods’ (TSN) current dividend yield stands at 1.9%, while that of Sanderson Farms (SAFM) is 1.3%. Campbell Soup’s (CPB) current yield is 3.5%, and that of Conagra’s (CAG) is 2.3% based on its September 19 closing price. Dividend yield implies the cash flow received by the investor for each dollar invested in the company’s stock.
The majority of analysts have maintained a “hold” rating for Hormel Foods (HRL). Over the past 15 days, we have seen just one change in target price. On September 17, BMO upped the price target on Hormel Foods to $44.00 from $38.00.
Recently, McCormick’s (MKC) margins have been impressive. The company’s margins have expanded at a healthy rate in the past three quarters despite facing headwinds from higher distribution costs. During the last reported quarter, McCormick’s gross margin expanded by 340 basis points, while the operating margins improved by 330 basis points. Higher volumes, increased pricing, improved mix, and cost-saving measures more than offset the negatives stemming from cost inflation.
McCormick (MKC) is expected to announce its third-quarter results on September 27. Analysts expect the company to sustain its double-digit sales and EPS growth rate in the third quarter. McCormick’s top line will likely benefit from its recent acquisitions. Meanwhile, continued strength in the company’s underlying business, new products, higher net price realization, and expanded distribution should support its sales growth rate.
The J.M. Smucker Company (SJM) reported strong net sales and earnings in its last reported quarter. The company’s acquisition of Ainsworth significantly boosted its net sales growth rate. Meanwhile, its adjusted earnings jumped 17.9% year-over-year driven by a substantial fall in the effective tax rate.
Analysts maintain a consensus “sell” recommendation on the Campbell Soup Company (CPB) stock. Campbell Soup’s management has announced that it’s looking to divest its noncore Fresh and International segments and that it plans to pay down its debt with the proceeds. Campbell Soup reported adjusted EPS of $2.87 in fiscal 2018.
General Mills (GIS) disappointed with its margins performance in its fiscal 2019 first quarter. Its adjusted gross and operating profit margins fell, reflecting continued inflation in input costs and higher supply-chain costs.
The Campbell Soup Company’s (CPB) worries are likely here to stay—at least for the next couple of quarters. The company’s top line is expected to gain from incremental sales from its Snyder’s-Lance acquisition. Meanwhile, Conagra Brands (CAG) announced its acquisition of Pinnacle Foods.
Shares of packaged food manufacturers have eroded a significant amount of investors’ wealth so far this year. Weak organic sales, low margins, and earnings pressures are taking a toll on the financials of these companies and, in turn, their stock prices.
It had filed an earlier proxy seeking to replace only three directors and to push for a sale of the company, which it characterized as the only “justifiable outcome of a strategic review.” At the end of August, Campbell announced its intention to sell its fresh food units, including Bolthouse Farms, and its overseas brands Arnott’s and Kelsen. Birch Partners disclosed on Sept. 9 that it had entered into a voting agreement with (SAIC)(SAIC) to vote its stake of 17,920,892 shares, or 48.5% of Engility’s stock, in support of SAIC’s $1.5 billion merger bid for Engility announced on Sept. 10. Water Island Capital revealed an initial position in the apparel maker of 867,606 shares, or 5.5% of the publicly traded stock, over the time span from July 2 through Aug. 31 at prices ranging from $27.50 to $29.32 apiece.
Analysts maintained a neutral outlook on General Mills (GIS) stock before its earnings for the fiscal first quarter of 2019. Incremental sales from the Blue Buffalo acquisition, higher net price realization, cost and productivity savings, and lower taxes are expected to drive the company’s financials.
General Mills (GIS) is expected to announce its results for the fiscal first quarter of 2019 on Tuesday, September 18. Analysts expect the company’s top line to gain significantly from its recent acquisition of Blue Buffalo. However, continued weakness in its underlying business remains a concern. Analysts expect General Mills’ organic sales growth to remain low as benefits from higher pricing are expected to be offset by soft volumes.
Campbell (CPB) posts negative sales surprise in six of the past seven quarters. The company has also been witnessing strained margins due to cost inflation.
Dan Loeb is going after the descendants of John Dorrance, the early 20th century Campbell Soup Co. executive credited with inventing condensed soup. The activist investor, seeking a complete overhaul of the struggling soup maker’s directors, singled out Bennett and Mary Alice Dorrance Malone, the sibling pair that has served on the board for decades. “We can only conclude that the board remains beholden to the sentimental agenda of its vocal and empowered minority -- the two longstanding family representatives to the board who have stubbornly opposed options to create maximum value for all shareholders for decades,” Loeb said in a letter released publicly on Friday.
Dan Loeb is seeking to replace the entire Campbell Soup Co. board after asset sale plans announced last week fell short of his demands for a sale of the whole company. Loeb is nominating 12 directors to the soup maker’s board, including investor George Strawbridge, who has partnered with the activist’s New York hedge fund Third Point to push for changes at Campbell. In a sharply-worded letter to Campbell’s chairman Thursday, Loeb noted that the company’s shares are trading about 20 percent below their price 20 years ago.
Daniel Loeb’s Third Point LLC plans to launch a proxy fight to replace Campbell Soup Co.’s entire board as the activist hedge fund was unconvinced by the company’s plans to sell two units, the Wall Street ...
Daniel Loeb’s Third Point LLC plans to launch a proxy fight to replace Campbell Soup Co.’s entire board after the fund was underwhelmed by the company’s plan to sell two business units, said people familiar with the matter. Third Point’s prior stance was that a sale of the whole company was “the only justifiable outcome” for Campbell under its current board and management.
Campbell (CPB) unveils various actions as part of its prudent portfolio review and Board-led strategy, aiming at improving performance that has been drab otherwise.