ConAgra Foods Inc. (CAG) is the packaged food company providing branded and private branded food in households as well as commercial foods business serving restaurants and foodservice operations. The stock is currently trading around $43.75 at the upper end of its 52 week range of $28.93-$44.15. The stock has been outperforming the market this year rallying 20.56% year to date. CAG is scheduled to report earnings before the opening bell tomorrow, and the stock is bearish today falling by $0.25 or 0.56% on the session ahead of the close amidst the Greece troubles.
Over the past 12 quarters CAG has rallied on earnings day 8 times with an average move of 3.53%. The stock appears bullish on a chart going into the release having traded above the Ichimoku Cloud for the past few months since early April on the daily bars. Over the past 12 quarters CAG has rallied from earnings to the nearest options expiration 8 times with an average move of 4.31%. The stock looks as if it could reverse today’s trend and rally in today’s session. Investors are looking to see a continued trend from the past four quarters of beating earnings. Investors fear strong dollar headwinds and a constant labor dispute on the U.S. West Coast. However ConAgra has launched cost-saving initiatives which are expected to curb the loss from strong dollar headwinds.
The options market is currently implying a move of around $2.18 or 5% in CAG by this Friday’s close giving us targets of $41.59 and $45.95.
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