Based on the aggregated intelligence of 165,000-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

$10.1 billion


Packaged foods and meats

Trailing-12-Month Revenue

$12.1 billion


CEO Gary Rodkin (since 2005)
CFO John Gehring (since 2009)

Return on Equity (Average, Past 3 Years)



$953.2 million / $3.5 billion

Dividend Yield



General Mills (NYSE: GIS)
Kraft Foods (NYSE: KFT)
H.J. Heinz

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 89% of the 615 members who have rated ConAgra believe the stock will outperform the S&P 500 going forward. These bulls include jquigley2 and 6cents.

A couple of months ago, jquigley2 highlighted ConAgra's recent initiatives to reshuffle:

Solid company which has divested itself of those lines that were not bringing in profits, and has bought others that are helping the bottom line. They deal with both public (grocery) and with institutions (restaurants etc.). Their dividend gives a 3% return.

While ConAgra's restructuring efforts did help improve operating margin in its most recent quarter, weakness in the restaurant sector continued to weigh on the company's top and bottom lines. ConAgra is often criticized for its lack of brand power, and in turn, pricing power, relative to its close rivals. It might be particularly vulnerable in this tough environment. Historically, ConAgra's gross margin has been about 10% lower than those of food giants General Mills, Kraft, and Heinz.

Still, with ConAgra continuing to make healthy balance sheet strides, CAPS members like 6cents think the dividend yield is just too tasty to pass up:

As a benefit it has a 3.3% dividend,[down from 09, but better than 08]. I know declining dividends can mean trouble. Part of this is caused by restructuring. They carry name brands people know and trust. brands like, Hunts, Libbys, healthy choice, etc. Wal-Mart is one of there major customers. ... Also the stock is slightly undervalued right now. I believe the shift of people not buying name brand items has bottomed out.

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!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Heinz is a Motley Fool Income Investor pick. Wal-Mart Stores is a Motley Fool Inside Value recommendation.The Fool's disclosure policy always gets a perfect score.