44.25 +0.68 (1.56%)
After hours: 4:52PM EDT
|Bid||43.00 x 900|
|Ask||44.47 x 2200|
|Day's range||43.08 - 43.89|
|52-week range||41.01 - 60.69|
|Beta (3Y Monthly)||0.91|
|PE ratio (TTM)||12.13|
|Earnings date||18 Dec 2018 - 24 Dec 2018|
|Forward dividend & yield||1.96 (4.55%)|
|1y target est||47.72|
You’re not alone, and Big Food is taking note. As consumers increasingly lean toward fruits, vegetables, grains and meats unsullied by preservatives and sweeteners, food makers including J.M. Smucker Co., General Mills Inc. and Conagra Brands Inc. are looking to reshape portfolios to shed slow- or no-growth units. In July, Smucker said it was selling its U.S. baking unit, including Pillsbury, to Brynwood Partners to focus on innovation in segments such as coffee, peanut butter and snacks, many of which can be marketed as healthful.
General Mills, JCPenney, and Procter & Gamble could all lose customers to Amazon’s growing portfolio of private label brands.
On October 8, UBS analyst Steven Strycula upgraded Conagra Brands (CAG) stock to “buy” from “neutral.” He increased the target price to $40 per share on Conagra Brands stock from $38, which reflects an upside potential of 15.4% based on the closing price of $34.65 on October 8. Strycula thinks that the synergies from the Pinnacle Foods acquisition, the improved volume, and the company’s improved mix with less discounting could drive long-term growth. Conagra Brands announced the Pinnacle Foods acquisition on June 27 for ~$10.9 billion, which includes Pinnacle Foods’ net debt of $2.7 billion.
Wall Street analysts maintain a neutral outlook on General Mills (GIS) stock. Among 19 analysts covering General Mills stock, 14 analysts suggest a “hold,” four analysts recommend a “buy,” and one analyst recommends a “sell.”
Most of the Wall Street analysts covering Campbell Soup (CPB) stock maintain a “sell” rating. Analysts gave a consensus target price of $36.71 per share on CPB stock, which is roughly around its closing price of $36.51 on October 3. Analysts expect Campbell Soup’s (CPB) sales and earnings to remain weak in the near term.
Wall Street analysts are maintaining a neutral outlook on the majority of food companies. Moderating demand for packaged foods, business reinvestment needs, and input and logistics cost headwinds are taking a toll on the financials of these food companies.
Have you been keeping an eye on General Mills Inc’s (NYSE:GIS) upcoming dividend of US$0.49 per share payable on the 01 November 2018? Then you only have 4 days left Read More...
Conagra Brands (CAG) reported lower-than-expected earnings in the first quarter of fiscal 2019. Its adjusted EPS of $0.47 rose 2.2% YoY (year-over-year) but fell short of analysts’ consensus estimate of $0.49. Soft volumes, weak margins, and a tough YoY comparison adversely impacted the company’s earnings growth rate. However, lower taxes and a fall in its outstanding share count supported its bottom line.
Kraft Heinz sported a narrow moat until August 2018, and would not have been in the Wide Moat Focus Index to begin with. The Morningstar Wide Moat Focus Index, for instance, has outperformed the broad market by 3.65% annually through July 2018 since its inception in February 14, 2007. The idea of “buying good companies at a good price” is easy to understand in concept, and with funds following Morningstar’s moat index methodology, putting it into practice can be easier than managing it yourself.
Conagra Brands (CAG) reported net sales of $1.83 billion in the first quarter of fiscal 2019, a rise of 1.7% YoY (year-over-year) and short of analysts’ consensus estimate of $1.85 billion. Higher prices and a favorable mix added 1.2% to the company’s net sales growth, while its recent acquisitions of Sandwich Bros. of Wisconsin and Angie’s BOOMCHICKAPOP contributed 2.0% to its net sales growth rate.
Conagra Brands (CAG) disappointed with its results for the first quarter of fiscal 2019, which it released on September 27. Conagra Brands’ profit margins also remained weak and contracted on both a YoY (year-over-year) and a sequential basis. Conagra Brands expects its organic sales to stay flat or mark a slight fall YoY in the second quarter of fiscal 2019.
On September 27, McCormick (MKC) reported better-than-expected bottom-line results for its fiscal third quarter. McCormick’s adjusted EPS of $1.28 beat the Wall Street estimate of $1.27 and jumped 14.3% year-over-year.
On September 27, McCormick (MKC) reported mixed results for the fiscal third quarter. Although the company sustained its double-digit sales, its net sales fell marginally short of analysts’ expectations.
At VanEck we are big fans of Morningstar’s Equity Research—not only because their analysis informs moat-oriented indices that underlie the moat mutual fund and ETFs that we offer globally. Morningstar’s moat-oriented index methodologies apply a consistent process to identifying companies with durable competitive advantages and assessing their value. With over 100 analysts globally helping to identify dominant players in different industries, perhaps the most powerful attribute of Morningstar’s process is the price-to-fair value metric.
Of the 20 analysts providing recommendations on Kellogg (K) stock, 11 analysts suggest a “hold” rating, six analysts have a “buy” rating, and three analysts maintain a “sell” rating. Analysts have a target price of $73.35 per share on Kellogg stock, which indicates an upside of a mere 1.7% based on its closing price of $72.10 on September 25.
McCormick (MKC) reported mixed third-quarter results on September 27 for the period ending on August 31. The company’s sales and earnings continued to grow at an exceptional rate due to incremental sales from its Frank’s and French’s acquisitions. Strength in the company’s base business, new products, and expanded distribution also supported the top-line growth rate.
Kellogg’s (K) margins are expected to remain weak in H2 2018 despite the company annualizing the list price adjustment in the third quarter. Kellogg’s gross margins are expected to take a hit from a mix-shift towards low margin markets and categories. Meanwhile, its DSD transition is expected to remain the significant drag.
Analysts expect Kellogg (K) to sustain sales growth momentum in the second half of 2018 and generate mid-single-digit growth. Kellogg’s underlying sales are showing sequential improvement, and analysts expect the underlying business to continue to improve on the back of innovation and expanded distribution.
Kellogg (K) stock is up 6.1% YTD as of September 25. However, the company’s stock has seen a steep recovery (as can be seen in the graph) and has grown 27.3% since it reported its first-quarter results on May 3.
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.