As the food industry contends with record inflation, Conagra Brands is making concerted efforts to stabilize its operations. Although the consumer goods giant has reaffirmed its full-year outlook, investors question whether this assurance can halt the security’s dramatic downward trajectory, which has seen it lose more than 40% of its value over the past twelve months.
Persistent Analyst Doubt
Market experts remain largely unconvinced, maintaining a cautious stance with predominant “Hold” or “Reduce” ratings. The consensus price target among analysts sits at approximately $21.92. From a technical perspective, the shares continue to trade below both their 50-day and 200-day moving averages, signaling a sustained bearish trend. The upcoming quarterly report, scheduled for January 2, 2026, is now viewed as a critical test. The central question is whether Conagra Brands can successfully execute its inflation-combatting strategies and initiate a meaningful reversal.
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Strategic Response to Economic Pressures
During a recent presentation at the J.P. Morgan Forum, CEO Sean Connolly and CFO Dave Marberger detailed the company’s plan to mitigate the crushing 7% overall inflation rate. Their strategy aims to offset roughly 5.5% of this financial pressure through a series of targeted measures. Operational improvements are showing promise, with service levels recovering to exceed 98% following a previous disruption. The frozen and refrigerated segments, in particular, are demonstrating significant growth. Management also noted that advertising activities are gradually returning to pre-pandemic levels, accompanied by intensified innovation initiatives designed to align with shifting consumer preferences toward health and wellness.
Sustainability Efforts in the Background
Conagra Brands recently recognized the winners of its annual sustainability awards, highlighting projects such as a logistics initiative that yielded savings of about $250,000 while reducing CO2 emissions by 123 tons. While these programs enhance the corporate image, they are currently considered peripheral to the immediate concerns driving the stock’s performance.
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