We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pilgrim's Pride (PPC) Down to Sell on Lingering Macro Risks
Read MoreHide Full Article
Zacks Investment Research downgraded Pilgrim's Pride Corporation (PPC - Free Report) to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold) on Dec 27, 2016. Going by the Zacks model, stocks carrying a Zacks Rank #4 are likely to perform weaker than the broader market in the quarters ahead.
Why to Avoid Pilgrim's Stock
Post third-quarter 2016 earnings release, Pilgrim's Pride’s shares recorded a negative return of 7.98% – weaker than the negative return of 7.45% provided by the Zacks categorized Food-Meat Products industry.
Over the past 30 days, the Zacks Consensus Estimate for the stock moved south, reflecting negative market sentiments.
Notably, the projected earnings per share and sales growth (F1/F0) are currently pegged at -30.00% and -2.75%, respectively.
Pilgrim's Pride’s revenues are being hurt due to appreciation of the U.S. currency. This is because a stronger U.S. dollar weighs over the company’s international sales and profitability, by increasing the competitive power of the smaller rivals operating in low-cost marketplaces.
Further, profitability of Pilgrim's Pride remains highly sensitive to market price as well as availability of certain products such as soybean meal, corn and sorghum. These items are used by the company as intermediate inputs in some of its offerings. Any sudden supply-demand imbalance or fluctuations in price of these materials might significantly raise the company’s operational expenses, in turn, affecting its bottom line, in the quarters ahead.
Pilgrim's Pride conducts its business in a highly competitive industry. Extensive industry rivalry exposes the company to risks of market-share loss. Moreover, Pilgrim's Pride makes huge investments in new growth projects or in research & development purposes. These costs, in turn, add to its existing debt burden.
In addition, Pilgrim's Pride’s operational efficacy and product supplying capability are both adversely affected by sudden outbreak of livestock diseases within the meat industry. For instance, occurrence of Avian flu had posed serious supply-chain issues to the company. Outbreak of such epidemic diseases often increases the extent of government restrictions on the import and export of fresh chicken products, raising the legal complexities of meat product producers.
Stocks to Consider
Better-ranked stocks in the industry include Dean Foods Company , Francesca's Holdings Corporation and Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) . All the three stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dean Foods Company has an average positive earnings surprise of 5.44%, for the last four quarters.
Francesca's Holdings Corporation’s positive earnings surprise is 26.55% for the trailing four quarters.
Ollie's Bargain Outlet Holdings, Inc.’s positive earnings surprise is 17.64% for the last four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pilgrim's Pride (PPC) Down to Sell on Lingering Macro Risks
Zacks Investment Research downgraded Pilgrim's Pride Corporation (PPC - Free Report) to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold) on Dec 27, 2016. Going by the Zacks model, stocks carrying a Zacks Rank #4 are likely to perform weaker than the broader market in the quarters ahead.
Why to Avoid Pilgrim's Stock
Post third-quarter 2016 earnings release, Pilgrim's Pride’s shares recorded a negative return of 7.98% – weaker than the negative return of 7.45% provided by the Zacks categorized Food-Meat Products industry.
Over the past 30 days, the Zacks Consensus Estimate for the stock moved south, reflecting negative market sentiments.
Notably, the projected earnings per share and sales growth (F1/F0) are currently pegged at -30.00% and -2.75%, respectively.
Pilgrim's Pride’s revenues are being hurt due to appreciation of the U.S. currency. This is because a stronger U.S. dollar weighs over the company’s international sales and profitability, by increasing the competitive power of the smaller rivals operating in low-cost marketplaces.
Further, profitability of Pilgrim's Pride remains highly sensitive to market price as well as availability of certain products such as soybean meal, corn and sorghum. These items are used by the company as intermediate inputs in some of its offerings. Any sudden supply-demand imbalance or fluctuations in price of these materials might significantly raise the company’s operational expenses, in turn, affecting its bottom line, in the quarters ahead.
Pilgrim's Pride conducts its business in a highly competitive industry. Extensive industry rivalry exposes the company to risks of market-share loss. Moreover, Pilgrim's Pride makes huge investments in new growth projects or in research & development purposes. These costs, in turn, add to its existing debt burden.
In addition, Pilgrim's Pride’s operational efficacy and product supplying capability are both adversely affected by sudden outbreak of livestock diseases within the meat industry. For instance, occurrence of Avian flu had posed serious supply-chain issues to the company. Outbreak of such epidemic diseases often increases the extent of government restrictions on the import and export of fresh chicken products, raising the legal complexities of meat product producers.
Stocks to Consider
Better-ranked stocks in the industry include Dean Foods Company , Francesca's Holdings Corporation and Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) . All the three stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dean Foods Company has an average positive earnings surprise of 5.44%, for the last four quarters.
Francesca's Holdings Corporation’s positive earnings surprise is 26.55% for the trailing four quarters.
Ollie's Bargain Outlet Holdings, Inc.’s positive earnings surprise is 17.64% for the last four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>