ConAgra (NYSE:CAG), Campbells (NYSE:CPB), General Mills (NYSE:GIS) Face Unpredictability

According to Barclays (NYSE:BCS), they see the models being used to evaluate companies like ConAgra (NYSE:CAG), Campbells (NYSE:CPB) and General Mills (NYSE:GIS) as being completely wrong, and they face a time of unpredictability going forward.

Barclays said, "What has become very clear to us over the last several quarters is that all of "our" models - and by that we mean both company and Wall Street models - have been inaccurate in assessing just how difficult the past two quarters would be for the food group. Looking forward, these same models may well prove just as wrong in predicting how achievable EPS growth acceleration might be over the next two quarters. Recall that Consensus estimates now imply about +11% EPS growth in F2H for such companies as CAG, Campbells, General Mills, etc. - vs. relatively anemic growth in F1H -- and call for a "hockey stick" cadence to their fiscal years.

"In our view, this sort of operating backdrop calls for a so-called "80% solution", as CPB CEO Conant recently termed it. That is, the reality is, in such an uncertain environment with an ever-shifting consumer, we believe food companies can't afford to wait for total clarity regarding strategic direction before acting. Instead, they must hope that they're "right enough" and be quick to course correct as circumstances change."

Barclays maintains an "Equalweight" on ConAgra, which closed Wednesday at $22.49, up $0.09, or 0.40 percent. Barclays has a price target on them of $25.

Campbell Soup closed at $34.33, down $0.23, or 0.67 percent. General Mills closed at $35.61, up $0.18, or 0.51 percent.