Why the Market Dipped But Pilgrim's Pride (PPC) Gained Today

Pilgrim's Pride (PPC) closed the most recent trading day at $36.16, moving +2.08% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.74%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 2.38%.

Heading into today, shares of the poultry producer had lost 13.44% over the past month, lagging the Consumer Staples sector's loss of 10.41% and the S&P 500's loss of 4.99%.

The upcoming earnings release of Pilgrim's Pride will be of great interest to investors. On that day, Pilgrim's Pride is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 41.98%. In the meantime, our current consensus estimate forecasts the revenue to be $4.5 billion, indicating a 0.83% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.3 per share and revenue of $18.5 billion, which would represent changes of -16.83% and +0.01%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Pilgrim's Pride. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Pilgrim's Pride holds a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Pilgrim's Pride is currently trading at a Forward P/E ratio of 8.24. This represents a discount compared to its industry average Forward P/E of 12.78.

The Food - Meat Products industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 27% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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