Fifteen Most Overvalued Stocks: ConAgra
Tweet
Share
E-mailGet Alerts CAG Hot Sheet
Price: $13.83 +3.44%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 9.8%
EPS Growth %: -17.9%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 9.8%
EPS Growth %: -17.9%
Join SI Premium – FREE
CONTRIBUTOR Douglas A. McIntyre http://www.247wallst.com
In looking for the most overvalued stocks, we considered metrics like price-to-sales, rapid stock price appreciation not supported by comparable financial growth, pricing and revenue pressure from competition, and future predictions of success like forward P/E. All of the stocks that we examined are large caps, and we have made an attempt to look across as many industries as possible.
Conagra (NYSE: CAG). In CAG�s most recent quarter, the firm reported a revenue increase of about 1%, below expectations.. The stock has moved from about $21 in August to the current level of almost $26. The company is in the midst of restructuring that involves shedding it commodity businesses and focusing on package-goods business.
Conagra cut its quarterly dividend earlier this year, and a number of shareholders have expressed concerns that the company�s management is overpaid. The company recently added $500 million to it share buyback pool, which is often a sign that the board is trying to support an overvalued share price.
As the Wall Street Journal pointed out recently, Conagra�s brands are mostly the No.2 or No.3 brands in their categories, making it tougher to sell them to retailers. Morningstar summed it up nicely by describing Conagra as an "unappealing mess".
It remains a mystery why the stock trades at $25.22, fairly near its 52-week high.
http://www.247wallst.com
In looking for the most overvalued stocks, we considered metrics like price-to-sales, rapid stock price appreciation not supported by comparable financial growth, pricing and revenue pressure from competition, and future predictions of success like forward P/E. All of the stocks that we examined are large caps, and we have made an attempt to look across as many industries as possible.
Conagra (NYSE: CAG). In CAG�s most recent quarter, the firm reported a revenue increase of about 1%, below expectations.. The stock has moved from about $21 in August to the current level of almost $26. The company is in the midst of restructuring that involves shedding it commodity businesses and focusing on package-goods business.
Conagra cut its quarterly dividend earlier this year, and a number of shareholders have expressed concerns that the company�s management is overpaid. The company recently added $500 million to it share buyback pool, which is often a sign that the board is trying to support an overvalued share price.
As the Wall Street Journal pointed out recently, Conagra�s brands are mostly the No.2 or No.3 brands in their categories, making it tougher to sell them to retailers. Morningstar summed it up nicely by describing Conagra as an "unappealing mess".
It remains a mystery why the stock trades at $25.22, fairly near its 52-week high.
http://www.247wallst.com
You May Also Be Interested In
- ConAgra (CAG) PT Lowered to $16 at Barclays
- Goldman Sachs reports global fund inflows for week of July 8
- Citi cuts PepsiCo rating as North America weakness shows no signs of abating
Create E-mail Alert Related Categories
ContributorsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
