ConAgra Foods Inc. (CAG): Today's Featured Consumer Goods Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

ConAgra Foods ( CAG) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day up 0.9%. By the end of trading, ConAgra Foods rose 30 cents (1.1%) to $28.38 on light volume. Throughout the day, 2.1 million shares of ConAgra Foods exchanged hands as compared to its average daily volume of 3.6 million shares. The stock ranged in a price between $28.13-$28.53 after having opened the day at $28.13 as compared to the previous trading day's close of $28.08. Other companies within the Consumer Goods sector that increased today were: Fabrinet ( FN), up 31.4%, ATC Venture Group ( ATC), up 12.7%, Winnebago Industries ( WGO), up 10.6%, and Thor Industries ( THO), up 10.2%.
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ConAgra Foods, Inc. operates as a food company primarily in North America. The company operates through two segments, Consumer Foods and Commercial Foods. ConAgra Foods has a market cap of $11.44 billion and is part of the food & beverage industry. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 6.3% year to date as of the close of trading on Monday. Currently there are six analysts that rate ConAgra Foods a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates ConAgra Foods as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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