PE of 8, a PEG of 1.16, and it pays a dividend of 3.8%.

10/29/2008

The Omaha-based maker of Chef Boyardee and Slim Jim announced a $900 million accelerated buyback plan. To repurchase the shares, the company will pay Merrill and BAC each $450 million to buy roughly 33 million shares. ConAgra will finance the repurchases with proceeds from the sale of its commodities trading business.

The consumer brands giant recently reported solid fourth quarter earnings. Net income jumped 5% to $201 million, or 41 cents a share, from $192 million, or 39 cents a share in the same period last year. Revenue grew to $3.08 billion, an increase of 15.2%.

Citigroup analysts reiterated their buy rating on ConAgra and set the price target at $32. The analysts said, "We recently met with ConAgra management and walked away feeling positive as CAG's Consumer Foods division is expected to show significant improvement in F09 (from current macro-economic trends in the U.S. which are driving consumers out of restaurants and into the grocery store)."

It was also good to see that ConAgra insiders are buying shares hand over fist. CEO Gary Rodkin bought 10,275 shares, along with the executive vice president, Robert Sharpe, who bought 12,000 shares. In total, five company directors bought 33,200 shares worth over $647,000 on July 3rd. The purchases were made just days after ConAgra stock fell to a 52-week low.

The Omaha-based maker of Chef Boyardee and Slim Jim announced a $900 million accelerated buyback plan. To repurchase the shares, the company will pay Merrill and BAC each $450 million to buy roughly 33 million shares. ConAgra will finance the repurchases with proceeds from the sale of its commodities trading business.

The consumer brands giant recently reported solid fourth quarter earnings. Net income jumped 5% to $201 million, or 41 cents a share, from $192 million, or 39 cents a share in the same period last year. Revenue grew to $3.08 billion, an increase of 15.2%.

Citigroup analysts reiterated their buy rating on ConAgra and set the price target at $32. The analysts said, "We recently met with ConAgra management and walked away feeling positive as CAG's Consumer Foods division is expected to show significant improvement in F09 (from current macro-economic trends in the U.S. which are driving consumers out of restaurants and into the grocery store)."

It was also good to see that ConAgra insiders are buying shares hand over fist. CEO Gary Rodkin bought 10,275 shares, along with the executive vice president, Robert Sharpe, who bought 12,000 shares. In total, five company directors bought 33,200 shares worth over $647,000 on July 3rd. The purchases were made just days after ConAgra stock fell to a 52-week low.

Cadbury (CBY) might be the call today. This candy maker's forecast about rising gross margins flies in the face of everyone from Hershey (HSY) to ConAgra (CAG), from Heinz (HNZ)to General Mills (GIS).

Cramer Interviews ConAgra CEO
In this April 29 'Mad Money' clip Jim Cramer and Gary Rodkin discuss an outlook on ConAgra.

Click here to watch the video.

Food

ConAgra's profits have been lifted by a commodity-trading and sales division that has done well lately. Analysts worry about a lack of transparency in that business, but a similar issue hasn't hurt Bunge (BG), a hot agricultural play. Bulls say the stock could hit the high-20s by year-end.

food

Anticipated growth & income

Keeps losing money, good valuation and sould be going up in this market but its not.

stedy stock price= low return, in other words stagnate.

why?

Too many recalls have been necessary for a food producer.

a real dog

Not hate, but no where close to "love". Slow and steady does indeed win the race; however, CAG is richly valued at twice the PE of the S&P. When the market has a 30% selloff, remember CAG. Worth considering at $19 per share.

terrible management