Conagra Brands (CAG) Stock Forecast & Price Target

Conagra Brands has demonstrated a positive trajectory in market share, with 44% of its portfolio now holding or gaining share in their respective categories, an increase from 39% in the previous period, indicating a recovery from past supply chain challenges. The company has also seen significant improvements in its single-serve frozen meals segment, achieving a market share of 52.9%, up from 50.2% last quarter, reflecting the successful navigation of supply chain issues. Additionally, Conagra is poised for growth, with projected sales performance indicating a return to growth in the latter half of the year, supported by innovation and the resolution of previous supply chain disruptions.

Conagra Brands is facing significant profitability challenges, with near-term operating margins expected to be below the full-year range of 11-11.5% due to rising inflation and the depletion of pre-tariff inventory. The company's earnings per share (EPS) estimates have been revised downward multiple times, dropping from $1.74 to $1.70, primarily due to increased gross margin pressures and elevated advertising and promotion expenditures. Additionally, the organic sales growth outlook for fiscal year 2026 remains weak at only +0.2%, suggesting further struggles in the company's financial performance.