Conagra Brands (CAG) Stock Forecast & Price Target

Conagra Brands is experiencing positive momentum as 44% of its product portfolio is now holding or gaining market share, an increase from 39% in the previous fiscal quarter, indicating a strengthening competitive position. Additionally, advertising and promotional expenses (A&P) are projected to rise to approximately 2.5% of sales, suggesting an investment in brand visibility and consumer engagement that could enhance future sales growth. Despite previous supply chain challenges impacting performance, these improvements in market share and strategic spending are likely to contribute to a favorable outlook for the company's financial performance.

Conagra Brands is experiencing near-term margin pressures due to modestly higher inflation and the depletion of pre-tariff inventory, which is likely to result in Q2 operating margins falling below the anticipated range of 11-11.5%. Additionally, the company's earnings per share (EPS) estimate has been revised down slightly to $1.73, primarily driven by declining gross margins amid inflationary challenges. Furthermore, the fiscal year 2026 organic sales outlook remains stagnant at +0.2%, indicating expectations of subdued growth and a softer performance in the latter half of the year.