ConAgra (CAG) Delivers a “Better Than Feared” Quarter, Says RBC Capital
With a share price drop of nearly 34% in 2025 so far, Conagra Brands, Inc. (NYSE:CAG) is is included among the 10 Best Beaten Down Dividend Stocks to Buy Right Now.
On October 2, RBC Capital reaffirmed its Sector Perform rating and $22.00 price target on CAG following the company’s latest quarterly results. The firm described the report as “better than feared,” noting that both revenue and margins surpassed muted market expectations. Although Conagra Brands, Inc. (NYSE:CAG)’s revenue declined 4.11% over the past twelve months, the company continues to maintain a healthy gross profit margin of 25.6%.
RBC observed that the company’s recent margin and revenue gains were partly supported by favorable trade spend timing, but this benefit is likely to reverse in the next quarter. The firm also warned that profitability could remain under pressure for the rest of the year due to higher input costs, especially in proteins.
While RBC believes Conagra Brands, Inc. (NYSE:CAG)’s full-year guidance is attainable, it also flagged risks to the expected growth acceleration in the latter half of the fiscal year, pointing to consumer spending trends and pricing dynamics as potential hurdles.
Conagra Brands, Inc. (NYSE:CAG) continues to uphold a strong dividend record, having paid uninterrupted quarterly dividends since January 1976. The company currently distributes $0.35 per share each quarter and has a dividend yield of 7.66%, as of October 16.
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