ConAgra Foods makes and sells products under various brand names that are available in supermarkets, as well as restaurants and food service establishments. The security is currently testing the USD 23.81 support and it should allow a rally.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.88. In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at 1.98 USD for this year and 2.11 USD for the next year, ConAgra Foods is currently paid 12.2 and 11.43 times the results.

The security was oversold close to USD 23.8 and this situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next USD 24.77 resistance.

So as to make the most of a potential technical rebound of ConAgra Foods, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the USD 24.77 resistance. Investors should not insist under USD 23.81 and are better to place a stop loss order under this threshold.