Assessing Conagra Brands (CAG) Valuation After Q1 2026 Results Beat and Confident Outlook

Conagra Brands (CAG) got investors’ attention after its fiscal first-quarter 2026 results surpassed Wall Street expectations. Even with lower sales and net income, management reiterated its full-year guidance, which signals steady confidence.

See our latest analysis for Conagra Brands.

Conagra Brands’ latest results sparked a swift jump in its share price, reflecting relief that performance was not as weak as some had feared and confidence in management’s ability to handle rising costs. Even so, long-term total shareholder returns tell a more cautionary tale, with a 1-year total return of -31% and steady declines over the past three and five years. This underscores the challenge of reigniting momentum in a tough consumer environment.

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The stock’s recent rally raises the key question: is Conagra Brands an overlooked value play at current levels, or is the stability already reflected in its share price and analyst targets, leaving little room for upside?

Most Popular Narrative: 7.1% Undervalued

Conagra Brands is currently trading at $19.11, with the widely followed narrative suggesting a fair value of $20.58. This signals moderate upside potential from analysts’ collective view, despite recent turbulent results and management caution.

Strong consumer demand and steady consumption trends bode well for future revenue growth. This suggests that the company can maintain its top-line momentum even amidst a challenging economic backdrop. The stabilization of supply chain constraints, particularly in the latter half of next year, is expected to improve operational efficiencies and margins. This would benefit overall earnings performance.

Read the complete narrative.

Analysts are betting on a scenario where core demand holds steady and margin recovery outpaces headwinds. Their forecast relies on a profit path and future valuation multiple that is rarely seen in this space. Want to see which bold projections anchor this upbeat price target? Discover how small changes in just one key assumption could swing the outcome.

Result: Fair Value of $20.58 (UNDERVALUED)

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

However, persistent inflation and unpredictable consumer sentiment could challenge Conagra’s recovery. These factors could potentially limit the upside seen in recent analyst projections.

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

Build Your Own Conagra Brands Narrative

If you want to interpret the numbers differently or prefer to dig into the details yourself, you can build your own view in just a few minutes. 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.

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