Pilgrim's Pride (PPC) Surpasses Market Returns: Some Facts Worth Knowing

In the latest trading session, Pilgrim's Pride (PPC) closed at $37.33, marking a +1.61% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.47%.

Shares of the poultry producer witnessed a loss of 15.19% over the previous month, trailing the performance of the Consumer Staples sector with its loss of 6.18%, and the S&P 500's loss of 1.88%.

The upcoming earnings release of Pilgrim's Pride will be of great interest to investors. The company is expected to report EPS of $0.76, down 41.98% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.5 billion, reflecting a 0.83% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.3 per share and a revenue of $18.5 billion, representing changes of -16.83% and +0.01%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.59% lower. Currently, Pilgrim's Pride is carrying a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Pilgrim's Pride is currently being traded at a Forward P/E ratio of 8.54. For comparison, its industry has an average Forward P/E of 12.76, which means Pilgrim's Pride is trading at a discount to the group.

The Food - Meat Products industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 27% of all 250+ industries.

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

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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

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