Investors in food company ConAgra Foods
must have breathed a sigh of relief over the company's latest earnings
results. They weren't particularly good, but the company has had a
series of issues over the past year. In other words, any results that
don't indicate any more deterioration will immediately switch investors'
focus to how cheap the stock is compared to peers like General Mills and Kraft Foods. Is it now time to see ConAgra as the value play in the sector?
ConAgra's problems
Going into its third-quarter results, ConAgra was reeling from a number of issues, covered in detail in a recent article. Unfortunately, ConAgra had difficulties in all three of its segments (consumer foods, commercial foods, and private brands), while its acquisition of Ralcorp has also disappointed, and the regulatory review process overshadowed the creation of its Ardent Mills joint venture with Cargill and CHS.
Going into its third-quarter results, ConAgra was reeling from a number of issues, covered in detail in a recent article. Unfortunately, ConAgra had difficulties in all three of its segments (consumer foods, commercial foods, and private brands), while its acquisition of Ralcorp has also disappointed, and the regulatory review process overshadowed the creation of its Ardent Mills joint venture with Cargill and CHS.
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