They are still buys years after their split

Article Excerpt

Conagra’s shares are up 13% this year. It continues to benefit as households stock up on food basics due to COVID-19. However, potato-processor Lamb Weston— Conagra spun it off in 2016—is down 27%. Still, that stock should rebound as more restaurants re-open following their pandemic shutdowns. CONAGRA BRANDS INC. $39 is a buy. The company (New York symbol CAG; Income Portfolio, Consumer sector; Shares o/s: 486.7 million; Market cap: $19.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.conagrabrands.com) makes a variety of popular foods, including Chef Boyardee canned pasta, Hunt’s tomato sauce, Peter Pan peanut butter, Orville Redenbacher popcorn and Reddi-wip whipped cream. In October 2018, Conagra acquired foodmaker Pinnacle Foods Inc. (New York symbol PF) for $8.03 billion (64% cash, 36% stock). If you consider Pinnacle’s debt, the price rises to $10.9 billion. That firm’s top brands include Duncan Hines (cake mixes), Vlasic (pickles) and Wish-Bone (salad dressings). Due to strong demand for packaged foods during the COVID-19 lockdowns, Conagra’s sales…

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