Home / Street Sector / Profitability Analysis To Overcome Risk: ConAgra Foods (NYSE:CAG), Hanesbrands (NYSE:HBI)

Profitability Analysis To Overcome Risk: ConAgra Foods (NYSE:CAG), Hanesbrands (NYSE:HBI)

Following analysis criteria, ConAgra Foods, Inc. (NYSE:CAG) attains noticeable attention, it are surging 1.85% to traded at $48.38. CAG attains analyst recommendation of 2.40 on scale of 1-5 with week’s performance of 2.98%. ConAgra Foods Inc. (NYSE:CAG) was upgraded by investment analysts at RBC Capital Markets from a “sector perform” rating to an “outperform” rating in a research report issued on Friday.

The firm presently has a $54.00 price target on the stock, up from their previous price target of $50.00. RBC Capital Markets’ price target suggests a potential upside of 13.68% from the firm’s current price. The analysts noted that the move was a valuation call. ConAgra Foods (NYSE:CAG) last reported its quarterly earnings results on Thursday, September 29th. The firm reported $0.61 eps (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.13. The business had income of $2.67 billion for the quarter. ConAgra Foods had a return on equity of 28.48% and a net margin of 5.76%.

The firm has noticeable returns on equity ratio of 18.10%, which shows how much profit each dollar of ordinary stockholders’ equity generates. The returns on investment very popular metric among passive investors, it stands at 7.30%. To see the other side of depiction, profit margin of CAG stands at positive 5.70%; that indicates a firm actually every dollar of sales keeps in earnings. The 4.80% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of CAG, it holds price to book ratio of 5.71 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 18.17, and price to earnings ratio calculated as 42.70. The price to earnings growth ration calculated as 4.13. CAG is presenting price to cash flow of 26.73 and free cash flow concluded as 29.56.

Hanesbrands Inc. (NYSE:HBI) presented as an active mover, shares raised 0.99% to traded at $24.40 in most recent trading session. The firm has floated short ratio of 8.99%, hold to candle to sentiment indicator of Short Ratio, its stand at 9.18.

Efficiency or profitability analysis gives an appropriate idea for investment decision; HBI attains returns on investment ratio of 14.20% percent, which suggests it’s viable on security that has lesser ROI. To strengthen this concept we can use profit margin, which is standing at positive 8.60% percent, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 12.50% percent and 37.50% percent respectively.

Turns back to returns ratios, returns on equity stands at 43.30% percent. Usually, financial analysts consider return on equity ratios in the 15-20% range as an attractive level of investment quality. Narrow down focus to firm performance, its weekly performance was -5.83% and monthly performance was -6.51%. The stock price of HBI is moving down from its 20 days moving average with -4.00% and isolated negatively from 50 days moving average with -6.77%.


About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

Check Also

Uni-Pixel (NASDAQ:UNXL)- Stocks Luring Investors with Juicy Profitability Figures: Automatic Data Processing (NASDAQ:ADP)

Uni-Pixel, Inc. (NASDAQ:UNXL) kept active in profitability ratio analysis, on current situation shares price increased …

Leave a Reply

Your email address will not be published. Required fields are marked *