Conagra Brands (CAG) Stock Forecast & Price Target

Conagra Brands is poised for growth as its advertising and promotions (A&P) expenses are projected to reach approximately 2.5% of sales, indicating a strategic investment in brand visibility and consumer engagement. Additionally, the company has demonstrated market share improvements, with 44% of its portfolio either holding or gaining market share in their respective categories, an increase from 39% in the previous fiscal quarter, reflecting effective market positioning despite earlier supply chain challenges. Furthermore, the potential reversal of trade timing benefits, which may have contributed to a temporary decline, suggests a stabilization in sales momentum, enhancing the company's long-term financial outlook.

Conagra Brands anticipates a decline in profitability during Q2, driven by higher inflation and the depletion of pre-tariff inventory, which is expected to lead to operating margins falling below the forecasted annual range of 11-11.5%. Earnings per share (EPS) estimates have been revised downward to $1.73, reflecting the impact of lower gross margins due to ongoing inflationary pressures. The company's organic sales outlook for fiscal year 2026 remains static at a modest growth of 0.2%, indicating a softer performance in Q2 and a predicted slowdown in the latter half of the fiscal year.