Conagra Stock Price (CAG) Hits New Low Ahead of Earnings – What To Expect

Conagra Brands' stock (NYSE:CAG) has hit further lows at $20.22 in the lead-up to its fiscal fourth-quarter earnings announcement scheduled for this morning, before the opening bell. Persistent supply chain disruptions, reduced profit forecasts, and shifting consumer preferences are all seemingly casting a shadow of uncertainty over the company's near-term prospects.

Looking ahead to the earnings release, the consensus EPS estimate is $0.61, with a consensus revenue estimate of $2.88 billion, representing a 0.85% year-over-year decline. While Conagra has a track record of beating EPS estimates in recent quarters, the overall market sentiment is clearly cautious leading in.

The stock's recent performance gives some clues as to sentiment. Over the past week, CAG has traded within a narrow $20-$21 range, repeatedly testing new lows. This weakness is not an isolated incident but rather a continuation of a broader downtrend that has characterized CAG's performance throughout 2025, and over recent years. The stock has shed 26% since the start of the year, and is down 43% over the past 5 years.

Adding to the bearish sentiment is the company's recent history of headwinds. Back in February, Conagra announced a reduction in its annual profit and operating margin forecasts, citing supply constraints and unfavorable foreign exchange rates.

The challenges continued into the third quarter, where Conagra reported net sales of $2.84 billion, falling short of analysts' expectations of $2.90 billion and declining from $3.03 billion a year earlier.

Supply chain disruptions persisted, particularly affecting its frozen and refrigerated food segments due to operational difficulties at a key facility responsible for preparing chicken for frozen meals. Furthermore, the company faced weakened sales growth as budget-conscious consumers increasingly favored private-label brands over Conagra’s offerings, leading to a 3.5% drop in Conagra’s shares in premarket trading following the earnings release.

Conagra's response to these challenges has included increased promotions and price reductions aimed at boosting demand. However, these strategies have put pressure on margins.

Looking to wall street, analysts forecasts are more to the upside than down from here. The average 12-month analyst price target of $24.80 suggests a potential upside of more than 20% from current levels. However, this target seems to reflect more of a belief in a future recovery rather than immediate gains.

Adding to the uncertainty is the sustainability of Conagra's dividend. Despite maintaining dividend payments for 49 consecutive years and raising them for the past five years, Conagra's payout ratio reached 190% in 2024, meaning dividends now exceed earnings. Sustaining this would require a turnaround in profitability.