It’s been a hard slog for Conagra (NYSE:CAG) shareholders for a while. Though there have been attractive pullbacks that have created good investment opportunities (particularly late 2018), long-term investors don’t have a lot to show for their patience, as the returns have lagged the S&P 500 by a pretty significant amount over the last five, 10, and 20 years. The performance has been better relative to packaged foods industry and consumer defensives sector, but still not exceptional.
Unfortunately, I don’t see much evidence that the trend is likely to change in investors’ favor any time soon. Concerns about brand equity seem at least partly valid, and while initiatives like modernizing plants would likely pay off down the road, it’s hard to see much reason to pay up for the shares and today’s price looks quite fair.
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