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.