How Did ConAgra Foods’ Stock React to Fiscal 3Q16 Earnings?

How ConAgra Foods Continued to Drive Profitability in Fiscal 3Q16

(Continued from Prior Part)

ConAgra Foods’ stock performance

Before the opening bell on April 7, 2016, ConAgra Foods (CAG) reported its earnings for fiscal 3Q16, which ended February 28, 2016. The stock rose 1% to close at $46.09 as compared to $45.43 in the previous day’s trading session. The stock didn’t react much despite the fact that earnings and revenue beat estimates.

ConAgra Foods’ stock has risen 10% since its last earnings release on December 22. The stock rose just 1 % after ConAgra Foods reported its fiscal 2Q16 results despite higher-than-expected earnings for the quarter. The stock has risen ~11% so far in 2016 as of April 11 after rising 18% in 2015. ConAgra Foods has outperformed the S&P 500 Index by ~9%.

Peers’ stock performances

So far in 2016, ConAgra Foods’ peer General Mills (GIS) has returned ~9% and The Kraft Heinz Company (KHC) has returned 7%. The Campbell Soup Company (CPB) has returned 24% so far in 2016. GIS, KHC, CPB closed April 11’s trade at $62.80, $77.90, and $63.80, respectively. The Guggenheim S&P 500 Equal Weight Consumer Staples ETF (RHS) invests 2.7% of its portfolio in CAG. It also invests 8.3% of its holdings in the peers’ stocks combined. The iShares U.S. Consumer Goods ETF (IYK) invests 2.0% of its holdings in KHC.

In the next part of this series, we’ll take a look at the spin-off ConAgra Foods has planned for later this year.

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Did ConAgra Foods’ Revenue Rise in Fiscal 3Q16?

• Part 2 - How Did ConAgra Foods’ Segments Feed Its Fiscal 3Q16 Performance?

• Part 3 - Did ConAgra Foods Beat Earnings Estimates in Fiscal 3Q16?