It's interesting to see how analysts and institutions will sometimes prioritize future expectations over past performance. For much of its recent history, ConAgra (NYSE:CAG) has been a poorly-run packaged food company, lagging almost of all of its peers in terms of returns on capital, margins and stock market performance.
Nowadays, though, it's a somewhat popular pick on the Street. Major brokerages like Bank of America, Barclays, Citi and Wells Fargo all have "Buy" ratings on the stock and analysts seem to be buying the story that ConAgra's management has a new plan in place that will drive substantially better results. Investors may do well to be a little more skeptical. (For related reading, see Cozying Up To Kraft.)
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