Conagra Brands Inc. [NYSE:CAG] prices rallied 1.05% on Friday.
With a current price of $37.71, CAG is active in the Packaged Foods industry and it looks to be on-track for a five-day run of 1.19%.
In addition, CAG’s high over the last year is $39.34 and the low is $22.83. Over the last two 52 weeks, the company is trading 31.64%, while the S&P 500 is trading 1.11%.
Wait and see
Holding a Market Cap of $18.20 billion, Conagra Brands Inc. has seen a trading range over the last year of $22.83-$39.34.
For the last five days, CAG is up from its last closing price. The average shares trading hands each day is 2.73M, with average 10-day volume coming in at 2.77 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for CAG. When we apply the Elder Force Index to Conagra Brands Inc., we are seeing an Elder Force Indicator number of 274270.23.
The recent performance of the stock is another area that can tell traders how to proceed. CAG is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 14.41. Moreover, the company’s enterprise value has gone from $28.14B to $26.86B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, CAG made a profit of 810.2 million. Conagra Brands Inc. also saw quarter revenue growth year over year of 15.89%. In addition, the company has operating cash flow of $1.92 billion.
Looking at popular technical indicators, the company’s 5-day moving average is 37.31 compared to the 50-day moving average of 36.30. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. CAG currently holds a 9-day RSI of 72.18%, while 100-day RSI stands at 54.21%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. CAG’s 9-day MACD is 0.54 and the company’s 100-day MACD stands at 1.62.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.32% by insiders and 88.03% by institutions. Regarding institutional holdings, Capital World Investors owns 11.59%, while the second top holder, Vanguard Group, Inc. (The), currently owns 11.37%.
Over the last six months, insiders have sold 33,634 with the most recent transaction from Biegger David, EVP,Chief Supply Chain Officer, with a sell at price 37.66 per share.
Overall, the recommended rating for CAG is Moderate Buy. Currently, the company has 14 analysts watching the stock, and the average quarterly earnings estimate is 0.73. Quarterly revenue estimates are averaging 2.98B with the high estimate reaching 3.04B and the low at 2.89B.
To review, the current 1-year target estimate is sitting at 37.74, while the current price 37.71. Based on this, we expect the stock to rise considering the aforementioned fundamentals.