The security has had a particularly volatile year thus far
The shares of Conagra Brands Inc (NYSE:CAG) are up 1% to trade at $33.51 at last check, after the company approved a quarterly dividend payment of 33 cents per share to be paid on Sept. 1 to shareholders of record as of Aug. 3. The packaged goods name will also host its 2022 Investor Day on Wednesday, July 27 to discuss the future outlook of the business, brands, growth strategies, supply chain modernization, and its ongoing sustainability efforts.
It has been a particularly volatile year for Conagra Brands stock so far, which had its latest rally rejected at the $36 mark. The shares are now trading firmly below their 20-day moving average, an area that has served as both support and resistance over the last several months. Year-to-date, CAG is slightly below breakeven with a 2% deficit.
Options traders have been much more bullish than usual. This is per CAG's 10-day put/call volume ratio of 1.87 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 88th percentile of its annual range.
The stock provides a fair valuation, at a forward price-earnings ratio of 13.66, and a price-sales ratio of 1.38. Conagra Brands stock also offers a very attractive dividend yield of 3.77% with a forward dividend of $1.25. In turn, investors looking to preserve their wealth over long periods of time may be best suited for Conagra Brands stock, seeing as the business’ growth rate remains low.
For 2023, the food company is expected to grow its revenues 4.6% and its earnings 2.1%. CAG is also anticipated to increase its revenues and earnings 1.2% and 7.5%, respectively, for 2024. Conagra Brands’ balance sheet presents a large risk, with just $83.3 million in cash, and a massive $8.98 billion in total debt, which could be a long-term issue for the business.