Plenty of Ways to Play Conagra Brands Stock

A premium selling strategy could be prudent for CAG

facebook twitter linkedin

Conagra Brands, Inc. (NYSE:CAG) is one of North America's biggest branded food companies, with a market cap over $17 billion. You may not know Conagra, but you know their portfolio: Healthy Choice, Slim Jim, Reddi-wip, Vlasic, Angie's Popcorn, Duke's, Earth Balance, Gardein, and Frontera.

Conagra Brands doesn't report earnings until July 13 before the open, but there's plenty to unpack before the event. CAG is down 2.4% year-to-date, ceding this breakeven level earlier in the week. And today, the shares also breached their 320-day moving average for the first time on a closing basis since Jan. 13. Nevertheless, the stock also has a forward dividend of $1.10 and a dividend yield of 3.08%.

Depending on Conagra's price action this year, analysts may adjust, with five of the eight brokerages in coverage maintain a "hold" rating.

From a fundamental point of view, Conagra Brands is one of the safest dividend plays available on the market today. CAG also trades at a price-earnings ratio of 14.70 and has a forward price-earnings ratio of 13.26, making Conagra Brands stock an excellent value play as well. In addition, Conagra Brands has increased revenues by 6% and net income by 42% compared to what was reported for fiscal 2020. Looking a bit longer-term, Conagra Brands has increased revenues by 48% since fiscal 2018 and net income has grown by 75% since fiscal 2019. Overall, Conagra Brands stock's valuation and dividend yield make CAG stock a very appealing potential long-term investment, despite its lackluster performance in 2021.

It's also worth pointing out that CAG ranks low on the Schaeffer's Volatility Scorecard (SVS), with a score of just 17 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in, making the stock a potential premium-selling candidate.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners