Buying stocks at incredibly low valuations often comes with risk, but it may also result in massive returns.

Retirement Systems of Alabama lowered its stake in shares of Conagra Brands (NYSE: CAG) by 90.8% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 101,762 shares of the company's stock after selling 1,005,071 shares during the period. Retirement Systems

The rise and fall of oil prices are what get the headlines, but that's just the start of the problem the world faces.

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Conagra is deeply undervalued, trading at a forward P/E of 9.25 and offering a near 9% dividend yield. Dividend coverage remains achievable with projected FY26 earnings of $1.70, though input and energy cost risks persist. I target $18.70 per share (forward P/E 11) as fair value, with contrarian upside and attractive option strategies available.

That pundit now believes Conagra is the equivalent of a sell. The company might be out of sync with the times.

Down more than 60% from its highs, Conagra NYSE: CAG stock certainly presents risks. The forces that undercut market sentiment may persist, and stock prices may continue their decline.

ConAgra (CAG) offers a 9% yield, with its stock trading near 2008 crisis levels, primarily due to margin pressure and recent brand divestitures. CAG's Q3 2026 organic revenue rose 2.4%, and management expects stable operating margins and improved pricing power into fiscal 2027. Dividend sustainability is supported by inventory reduction and recent price increases, with 86% of free cash flow used for dividends in the first three quarters.

This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields 4.26%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 8%.

Conagra Brands, Inc. (CAG) Q3 2026 Earnings Call Prepared Remarks Transcript