Is Conagra Stock a Long-Term Buy?
Conagra Brands' (NYSE: CAG) stock is relatively inexpensive right now. Trading below $20, it may look like a buy, but the company's fundamentals tell a story of challenges and significant headwinds. What's going on with Conagra, and is it worth a long-term investment? Let's dive in deeper.
Conagra is a century-old consumer packaged goods (CPG) food company with several recognizable brands under its umbrella, including Marie Callender's, Healthy Choice, and Duncan Hines. The consumer staples stock has had a rough go over the past five years, declining nearly 50% in that time. Thus far this year, though, it's rebounded slightly, and is up over 8%.
Conagra does pay a dividend, and its current yield is 7.36%. On the surface, this seems great, but upon deeper inspection, it raises some questions. In addition to the stock price's decline, the company's free cash flow is expected to drop substantially in 2026. For the first half of fiscal 2026, free cash flow decreased from the prior year by $313 million. The company hasn't announced a cut to dividends, but it's hard not to think this may be on the table if Conagra's finances don't improve.
Source Fool.com
