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5-Star Stocks Poised to Pop: ConAgra

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, food company ConAgra Foods (NYSE: CAG  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at ConAgra's business and see what CAPS investors are saying about the stock right now.

ConAgra facts

Headquarters (Founded) Omaha, Neb. (1919)
Market Cap $10 billion
Industry Packaged foods and meats
Trailing-12-Month Revenue $12.6 billion
Management CEO Gary Rodkin (since 2005)
CFO John Gehring (since 2009)
Return on Equity (Average, Past 3 Years) 14.9%
Cash/Debt $1.1 billion / $3.3 billion
Dividend Yield 4%
Competitors Kraft Foods (NYSE: KFT  )
H.J. Heinz (NYSE: HNZ  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 669 members who have rated ConAgra believe the stock will outperform the S&P 500 going forward. These bulls include DollarDaze100 and All-Star Babachrono, who is ranked in the top 15% of our community.

Earlier this month, DollarDaze100 touched on the tasty tailwinds working in ConAgra's favor:

Food is king. Global prosperity and population growth will drive demand for food and, further, demand for higher quality food. Processors and packagers will rule the food world. ... This is a winner.

ConAgra even trades at a cheapish price-to-cash flow of 6.6. That represents a clear discount to industry peers like Kraft (14.6), Heinz (11.1), and General Mills (NYSE: GIS  ) (14.3).

CAPS All-Star Babachrono elaborates on the ConAgra bull case:

Not a growth story by any means. Their solid record of paying dividends for years is the reason for me to pick them up for my retirement IRA. ... [H]olding them for many years and reaping the advantages of the dividends will be great! Their [free cash flow] is good and they only pay out half in dividends. They've also started to pay off LT debt with their free cash.

What do you think about ConAgra, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track ConAgra? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Heinz. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:00 PM
CAG $25.25 Down -0.01 -0.04%
ConAgra Foods, Inc… CAPS Rating: *****
KFT $38.57 Down -0.12 -0.31%
Kraft Foods, Inc. CAPS Rating: *****
HNZ $53.50 Down -0.05 -0.09%
H.J. Heinz Company CAPS Rating: *****
GIS $39.08 Up +0.10 +0.26%
General Mills, Inc… CAPS Rating: *****

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