Wall Street's Most Accurate Analysts Give Their Take On 3 Risk Off Stocks Delivering High-Dividend Yields

Analysts have recently adjusted ratings and price targets for three high-yielding consumer staples stocks: Conagra Brands (CAG), Altria Group (MO), and Energizer Holdings (ENR). Conagra was downgraded to Underperform/Sell by B of A Securities and Goldman Sachs, respectively, with lowered price targets ahead of its Q4 results on July 10th. Altria received an Underweight rating from Barclays with a price target increase, while Stifel maintained a Buy rating; the company reported strong quarterly earnings in April. Energizer's price target was raised by Barclays but lowered by JP Morgan, following in-line earnings for Q2.

Analysis

Recent analyst actions on high-yielding consumer staples stocks reveal divergent outlooks, a critical consideration for investors seeking refuge in traditionally defensive sectors during market turbulence. Conagra Brands, Inc. (CAG), despite its 6.28% dividend yield, faces considerable skepticism; B of A Securities analyst Bryan Spillane (61% accuracy) downgraded the stock from Neutral to Underperform, cutting the price target to $20 from $27 on June 12, 2025, while Goldman Sachs analyst Leah Jordan (61% accuracy) downgraded it from Neutral to Sell, slashing the target to $21 from $26 on June 9, 2025. These negative revisions precede Conagra's fiscal 2025 fourth-quarter and full-year results scheduled for July 10. In contrast, Altria Group, Inc. (MO), yielding 6.81%, presents a mixed analyst picture: Barclays analyst Gaurav Jain (66% accuracy) maintained an Underweight rating but increased the price target to $49 from $46 on May 2, 2025, whereas Stifel analyst Matthew Smith (60% accuracy) reiterated a Buy rating, raising the target to $63 from $60 on April 30, 2024, shortly after Altria posted upbeat quarterly earnings on April 29. Energizer Holdings, Inc. (ENR), with a 5.55% yield, also saw varied analyst adjustments following its in-line second-quarter earnings reported on May 6; Barclays analyst Lauren Lieberman (61% accuracy) maintained an Equal-Weight rating while raising the price target to $26 from $25 on May 16, 2025, but JP Morgan analyst Andrea Teixeira (61% accuracy) maintained a Neutral rating while lowering the price target to $30 from $36 on April 11, 2025. These updates underscore that even within the consumer staples sector, individual company prospects and analyst sentiment can differ significantly, necessitating careful stock-specific evaluation.

Key Decisions for Investors

• Investors should approach Conagra Brands (CAG) with significant caution given the recent dual downgrades to Underperform/Sell and substantial price target reductions from analysts with 61% accuracy, ahead of its upcoming earnings report on July 10.
• For Altria Group (MO), carefully weigh the conflicting analyst ratings – Barclays' Underweight versus Stifel's Buy – against the backdrop of its recent upbeat earnings and high dividend yield, considering the respective analyst accuracy rates of 66% and 60%.
• A neutral stance on Energizer Holdings (ENR) may be warranted due to the maintained neutral-equivalent ratings and mixed price target revisions from analysts, reflecting uncertainty despite its in-line Q2 earnings; monitor for future performance catalysts.
• Thoroughly scrutinize the underlying reasons for analyst rating changes and price target adjustments for these high-yield stocks, rather than relying solely on the dividend yield as an investment criterion, particularly in a turbulent market environment.