Revisiting Conagra Brands (CAG) Valuation as Analysts Highlight Resilience and Dividend Strength

Conagra Brands (CAG) is back under the spotlight after analysts highlighted the company’s strengths in reaching value-focused shoppers, especially in tough times. Investors are also eyeing its strong dividend yield as a potential draw.

See our latest analysis for Conagra Brands.

Conagra’s year has been a test of resilience, with new leadership announcements, a completed share buyback, and fresh product spotlights not enough to offset pressure on results. Despite active moves, shares have slid steadily, and the company’s 1-year total shareholder return is down by 33.7%, reflecting fading momentum and a cautious outlook among investors.

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With shares trading at a noticeable discount to analyst targets and value-focused investors taking note, the big question remains: Is Conagra genuinely undervalued right now, or is the market simply reflecting its slower growth prospects?

Most Popular Narrative: 10% Undervalued

Conagra’s last close of $18.50 sits below the most-watched narrative’s fair value estimate of $20.58, spotlighting a modest disconnect between current market sentiment and longer-term expectations. The stage is set for a valuation influenced by margin shifts and the company’s future earnings power. These are the numbers analysts are debating now.

The stabilization of supply chain constraints, particularly in the latter half of next year, is expected to improve operational efficiencies and margins, benefiting overall earnings performance. The incremental 53rd week in fiscal '26 presents an opportunity for additional revenue that could positively impact year-over-year comparisons, positively affecting earnings.

Read the complete narrative.

Curious why analysts are betting on a swing in margins, and what assumptions drive this higher fair value? There’s one critical factor behind this upgraded target, and it’s hiding in plain sight. Click through to uncover the surprising projection that could change how you see Conagra’s future.

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 or abrupt regulatory changes could quickly undermine these optimistic assumptions. This could make any future turnaround more challenging for Conagra.

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

Build Your Own Conagra Brands Narrative

If you want to challenge these assumptions or see the numbers differently, you can dive in, test the data for yourself, and create your own perspective 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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