ConAgra Foods, Inc.
) hit a new 52-week high of $36.10 on Apr 19 and eventually
closed at $36.06. Shares of this food products company have been
gaining momentum since it reported solid fiscal third quarter
results on Apr 3.
Year-to-date, share prices have recorded a healthy return of
22.2%. The company's long-term estimated EPS growth rate is
8.00%. Average volume of shares traded over the last three months
came in at approximately 3,619K.
Solid Third Quarter Performance
ConAgra posted strong fiscal third quarter results beating the
year-ago results in both revenues and earnings. The company's
earnings got a boost from the acquisitions undertaken by
ConAgra's earnings of 55 cents in the quarter were 7.8% more
than the earnings recorded in the year-ago quarter, primarily led
by an increase in revenue. Revenue for the quarter grew 13.4% to
$3,850.5 million, due to acquisitions.
ConAgra acquired the U.S. based private label food
manufacturer, Ralcorp Holdings Inc. in Jan, which contributed
roughly $292.0 million in sales and $22.0 million of operating
profits in the quarter. Thus, ConAgra expects that earnings from
Ralcorp will meet its expectations of 5 cents in fiscal 2013 and
25 cents in fiscal 2014.
Moreover, ConAgra's earnings are also expected to enhance in
the long term due to its recent agreement with
) and privately owned Cargill Inc. to set up a new joint venture
(a flour milling company) called Ardent Mills. This mill, subject
to regulatory approvals, is expected to be operational by the
late calendar year 2013.
The stock has gained continuous momentum following the string
of positive events over the past 2-3 months. This is the fourth
new high ConAgra has achieved since March this year, following
the highs on Mar 28, Mar 20 and Mar 14.
Other Stocks to Consider:
ConAgra currently carries a Zacks Rank #2 (Buy). Other stocks
worth a look in the food industry are
Flowers Foods Inc.
); carrying a Zacks Rank #1 (Strong Buy) and
), carrying a Zacks Rank #2 (Buy).
CONAGRA FOODS (CAG): Free Stock Analysis
CHS INC (CHSCP): Get Free Report
FLOWERS FOODS (FLO): Free Stock Analysis
KELLOGG CO (K): Free Stock Analysis Report
To read this article on Zacks.com click here.