Pilgrim’s Pride (PPC) ended the recent trading session at $30.24, demonstrating a +1.04% change from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.86%. Meanwhile, the Dow experienced a rise of 0.98%, and the technology-dominated Nasdaq saw an increase of 0.96%.
Shares of the poultry producer witnessed a gain of 8.44% over the previous month, beating the performance of the Consumer Staples sector with its loss of 1.32%, and the S&P 500’s loss of 1.96%.
Investors will be eagerly watching for the performance of Pilgrim’s Pride in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.75, marking a 50.66% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.6 billion, reflecting a 3.35% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.35 per share and a revenue of $18.5 billion, demonstrating changes of -54.55% and +0.01%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Pilgrim’s Pride. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 20.34% decrease. Pilgrim’s Pride is currently a Zacks Rank #5 (Strong Sell).
With respect to valuation, Pilgrim’s Pride is currently being traded at a Forward P/E ratio of 12.74. This expresses a discount compared to the average Forward P/E of 13.23 of its industry.
The Food – Meat Products industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 248, which puts it in the bottom 1% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
