PIlgrim’s Pride (PPC) closed the last trading day at $30.41, down -1.97% from the previous trading session. That change was narrower than the S&P 500’s 2.91% daily loss. At the same time, the Dow Jones lost 2.73% and the tech-heavy Nasdaq lost 0.25%.
Prior to today’s trading, shares of the poultry producer had gained 9.69% in the past month. That outpaced the Consumer Staples sector’s 2.55% loss and the S&P 500’s 0.84% gain during that time.
Pilgrim’s Pride will be looking to show some strength ahead of its next earnings release. In that report, analysts expect Pilgrim’s Pride to post earnings of $1.17 per share. This would mark a year-over-year growth of 85.71%.
It’s also important to note recent changes to analyst estimates for Pilgrim’s Pride. Recent revisions tend to reflect the latest short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated to short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. In the past 30 days, our consensus EPS projection has remained stagnant. Pilgrim’s Pride is currently a Zacks Rank #1 (Strong Buy).
Digging into the valuation, Pilgrim’s Pride currently has a Forward P/E ratio of 9.53. This valuation marks an imperceptible difference compared to the average Forward P/E of its sector of 9.53.
Additionally, it is worth mentioning that PPC has a PEG ratio of 0.64. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The Food – Meat Products industry currently had an average PEG ratio of 1.26 at yesterday’s close.
The Food – Meat Products industry is part of the Consumer Staples sector. This industry currently has a Zacks industry ranking of 23, which places it in the top 10% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.