17 Cheap Stocks Under $20 to Buy Now

12. Conagra Brands, Inc. (NYSE:CAG)

Stock Price: $17.08

Forward P/E: 9.90

Number of Hedge Fund Holders: 34

Conagra Brands, Inc. (NYSE:CAG) is one of the top cheap stocks under $20 to buy now. UBS analyst Peter Grom cut the price target on Conagra Brands, Inc. (NYSE:CAG) to $18 from $19 on December 23 and maintained a Neutral rating on the shares.

The rating came after Conagra Brands, Inc. (NYSE:CAG) reported results for fiscal Q2 2026 on December 19, announcing that the reported net sales for the quarter dropped 6.8% while the organic net sales decreased 3.0%. Reported operating margin for the quarter was 20.1%, while the adjusted operating margin was 11.3%.

Conagra Brands, Inc. (NYSE:CAG) further reported that the reported diluted net loss per share for fiscal Q2 2026 came up to $1.39, primarily due to certain non-cash goodwill and brand impairment charges. Adjusted earnings per share (EPS) came up to $0.45.

Management reported that the drop in organic net sales was driven primarily by flat price/mix and a 3.0% decrease in volume, while net sales were affected by an around 100 basis point headwind, which was driven by changes in retailer purchasing activity around quarter end. These included the timing of retailer merchandising events and the associated inventory builds.

Furthermore, the price/mix was impacted by an approximately 60 basis point headwind related to a change in estimate associated with fiscal 2025’s second quarter trade expense accrual, along with unfavorable product mix. Conagra Brands, Inc. (NYSE:CAG) reaffirmed its fiscal 2026 guidance and expects adjusted operating margin between ~11.0% and ~11.5% and adjusted EPS between $1.70 and $1.85.

Conagra Brands, Inc. (NYSE:CAG) is a consumer-packaged goods food company that operates in three segments: Grocery & Snacks, Refrigerated & Frozen, and International. Its brand portfolio encompasses Birds Eye, Duncan Hines, Healthy Choice, Marie Callender’s, Reddi-wip, and BOOMCHICKAPOP.