Many investors, especially those who are new to this game, naturally prefer to buy "sexy" stocks with good stories, even if these companies lose money. In their research, who will fall victim to the Wolf of Wall Street? Loiz et al. Al. It is found that it is "very common" for investors to suffer losses due to buying into the "surge and fall" plan.

In the era of blue sky investment in technology stocks, my choice seems outdated; I still prefer profitable companies like Conagra Brands (NYSE: CAG). Although profit is not necessarily a social welfare, it is easy to admire a company that can continue to produce profits. On the contrary, the loss-making company has not proven its profitability, and eventually the sweet milk of external capital may become sour.

View our latest analysis of the ConAgra brand

The market is a voting machine in the short term and a weighing machine in the long term, so the stock price will eventually follow the earnings per share (EPS). Therefore, many investors like to buy shares of companies whose earnings per share are growing. We can see that in the past three years, Conagra Brands' earnings per share has increased by 7.0% annually. Although this growth rate is not amazing, it does show that the business is growing.

I like to look at earnings before interest and taxes and (EBIT) earnings before taxes and revenue growth to re-understand the quality of company growth. Conagra Brands reported that last year's revenue and EBIT margin were flat. This is not bad, but it does not represent continued growth in the future.

You can view the company's revenue and profit growth trends in the table below. To view the actual numbers, click on the chart.

You will not stare into the rearview mirror while driving, so you may be more interested in this free report, which shows analysts’ forecasts of Conagra Brands’ future profits.

Like standing on a lookout and measuring the horizon at sunrise, insider buying is a joy for some investors. Because under normal circumstances, buying a stock is a sign that the buyer thinks its value is undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their behavior.

In the past 12 months, the insider sale of Conagra Brands stock has been insignificant compared to a buyer. Specifically, independent non-executive chairman Richard Lenny spent US$678,000, paying approximately US$33.92 per share. For me, this may be a belief.

In addition to insider purchases, another encouraging sign of Conagra Brands is that insiders as a whole own a considerable share. With up to US$68 million in shares as a whole, insiders contribute greatly to the company's success. This should allow them to focus on creating long-term value for shareholders.

One positive factor for Conagra Brands is that its earnings per share are growing. It's nice to see. Most importantly, we have seen insiders buying stocks, even if they already own a lot of stocks. For me, all of this is well worth taking a place on your watchlist and continuing to research. It is worth noting that we found 2 warning signs from Conagra Brands (1 is not suitable for us!), you need to consider.

The good news is that Conagra Brands is not the only growth stock with insider buying. This is a list of them... Insiders bought in the past three months!

Please note that the insider trading discussed in this article refers to reportable transactions in the relevant jurisdiction.

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