Stock up on this spinoff and parent

Article Excerpt

Potato-processer Lamb Weston has more than doubled since food giant Conagra spun it off on November 9, 2016. Investors received one Lamb Weston share for every three Conagra shares they held. While the emergence of COVID-19—and the closure of most restaurants—has pushed down Lamb Weston shares, the stock should rebound as more regions ease their lockdowns. Meantime, Conagra continues to benefit as households stock up on food basics during the pandemic. The packaged-food leader is also focused on healthier products to meet shifting demand and to spur its sales. CONAGRA BRANDS INC. $37 is a buy. The company (New York symbol CAG; Consumer sector; Shares outstanding: 487.1 million; Market cap: $18.0 billion; Takeover Target Rating: Medium; Dividend yield: 2.3%; 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. Due to the spinoff of Lamb Weston, Conagra’s sales fell 32.8%, from $11.6 billion in 2016 to $7.83 billion in 2017 (fiscal…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.