With a market cap of $8.5 billion, Conagra Brands, Inc. (CAG) is a leading consumer packaged foods company headquartered in Chicago, Illinois. Its diversified portfolio spans more than 70 well-known brands, including Birds Eye, Duncan Hines, Slim Jim, Healthy Choice, and Reddi-Wip, with operations across grocery, snacks, frozen, refrigerated, international, and foodservice channels serving both retail and commercial customers.

Companies worth between $2 billion and $10 billion or more are typically classified as “mid-cap stocks,” and CAG fits the label perfectly. The company continues to strengthen its market presence through brand modernization and product innovation, refreshing legacy franchises while introducing trend-driven offerings. This balanced approach across value and premium segments, supported by an extensive distribution network, enhances resilience and allows Conagra to reach a broad and diverse consumer base.

However, shares of the packaged foods company have fallen 37.8% from its 52-week high of $28.51. Shares of CAG have declined 7.4% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 3.7% rally over the same time frame. 

Over the longer term, Conagra Brands has significantly lagged the broader market, with its shares plunging 36.8% over the past 52 weeks, sharply contrasting with the S&P 500’s 12.9% gain during the same period. The weakness has persisted in recent months as well, with CAG sliding 20.3% over the past six months, underperforming the S&P 500’s 12.8% decline. 

Technically, the stock continues to signal downside pressure, having traded below both its 50-day and 200-day moving averages for most of the past year.

Conagra has underperformed the broader market over the past year as weakening fundamentals have weighed on investor confidence. Sales volumes have steadily declined, indicating weaker consumer demand and limited pricing power in a highly competitive staples market. Looking ahead, analysts expect revenue to contract, reflecting concerns that newer product launches are not yet strong enough to reaccelerate growth. Compounding these issues, Conagra’s past growth initiatives have delivered modest returns on invested capital, raising doubts about capital efficiency and long-term value creation. 

On Oct. 11, Bernstein analyst Alexia Burland Howard reiterated a “Hold” rating on Conagra Brands, and its shares dropped 2% in the next trading session. 

CAG’s top rival, Hormel Foods Corporation (HRL), has also faced similar challenges, and is down 27.2% downtick over the past 52 weeks and has dipped 22.5% over the past six months. 

Looking at CAG’s recent underperformance, analysts remain cautious about its prospects. The stock has a consensus rating of "Hold” from the 16 analysts covering it, and the mean price target of $20.20 suggests a 13.8% premium to its current price levels. 

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