Is CAG a good stock to invest in right now?

**Conagra Brands (CAG) faces significant challenges and uncertainties that make it a risky investment at the moment.** Here's why:

1. **Weak Financial Performance**: Conagra's recent financial results show disappointing earnings and revenue figures. The company reported an EPS of $0.56 for the latest quarter, missing the consensus estimate of $0.61. Revenue fell by 4.3% year-over-year to $2.78 billion, below analysts' expectations of $2.85 billion. This decline in earnings and revenue indicates a lack of strength in the company's core business operations.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|CAG|CAG.N|ConAgra Brands|2025 Q1|45.951859956236326|4.669E8|169|
|CAG|CAG.N|ConAgra Brands|2025 Q2|-0.593990216631726|2.845E8|169|
|CAG|CAG.N|ConAgra Brands|2025 Q3|-53.01165803108808|1.451E8|169|
|CAG|CAG.N|ConAgra Brands|2025 Q4|145.13399153737657|2.56E8|169|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|CAG|CAG.N|ConAgra Brands|2025 Q1|-3.7568870523415976|2.7949E9|169|
|CAG|CAG.N|ConAgra Brands|2025 Q2|-0.4052242760512453|3.1951E9|169|
|CAG|CAG.N|ConAgra Brands|2025 Q3|-6.32727752316265|2.841E9|169|
|CAG|CAG.N|ConAgra Brands|2025 Q4|-4.270621838328917|2.7818E9|169|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|CAG|CAG.N|ConAgra Brands|2025 Q1|44.77611940298506|0.97|169|
|CAG|CAG.N|ConAgra Brands|2025 Q2|-1.6666666666666683|0.59|169|
|CAG|CAG.N|ConAgra Brands|2025 Q3|-53.125|0.3|169|

2. **Cautious Outlook for Fiscal 2026**: Conagra's guidance for fiscal 2026 is lackluster, with expectations of organic net sales growth between -1% and 1% and adjusted operating margin between approximately 11.0% and 11.5%. This suggests that the company anticipates continued pressure on its profitability and sales growth in the near term.
3. **Strategic Divestitures and Cost Management**: The company has recently sold off certain brands, including Chef Boyardee, Van de Kamp's, and Mrs. Paul's. This strategic move may signal a shift in focus for the company, but it also indicates a recognition of the need to streamline its portfolio to improve profitability. The divestitures could lead to a more focused business, but it also means the company is reducing its revenue base.
4. **Market Sentiment and Analyst Ratings**: Analyst sentiment is bearish, with recent downgrades and reduced price targets from Stifel and UBS. The technical indicators for Conagra Brands are weak, with a technical score of 2.25, suggesting a high risk of further price declines in the near term. This sentiment is compounded by the company's weak quarterly execution in recent periods, as highlighted by analysts.
5. **Dividend Yield and Payout Ratio**: Conagra Brands has a high dividend yield of 7.29%, which is attractive to income-seeking investors. However, the company's adjusted earnings dividend payout ratio could be as high as 80% in fiscal 2026, which may put pressure on its finances and could indicate a risk of dividend cuts if earnings do not increase significantly.
6. **Strategic Moves and Innovation**: On the positive side, Conagra has been innovating and rebuilding its merchandising levels, which could lead to future growth. The company has also outperformed its closest peer by 29 percentage points in market share. However, these positive aspects are overshadowed by the current weak financial performance and cautious outlook.

In conclusion, while Conagra Brands has some positive aspects, such as a high dividend yield and strategic moves, the current weak financial performance, lackluster outlook, and bearish analyst sentiment make it a risky investment at this time. Investors should exercise caution and consider these factors before investing in CAG.