Rating Change #4
ConAgra Foods Inc
(CAG - Get Report)
has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, attractive valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 7.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 193.2% when compared to the same quarter one year prior, rising from $85.30 million to $250.10 million.
- Net operating cash flow has slightly increased to $323.90 million or 2.79% when compared to the same quarter last year. Despite an increase in cash flow, CONAGRA FOODS INC's average is still marginally south of the industry average growth rate of 11.84%.
ConAgra Foods, Inc. operates as a food company primarily in North America. The company operates through two segments, Consumer Foods and Commercial Foods. The company has a P/E ratio of 22.9, equal to the average food & beverage industry P/E ratio and above the S&P 500 P/E ratio of 17.7. ConAgra has a market cap of $10.42 billion and is part of the
food & beverage
industry. Shares are down 2.8% year to date as of the close of trading on Friday.
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