Pilgrim's Pride Corporation ( PPC Quick Quote PPC - Free Report) is in solid shape, courtesy of its strategic growth endeavors. Notably, this Zacks Rank #2 (Buy) stock has increased 18% in the past three months compared with the industry’s growth of 0.4%. Moreover, the stock has comfortably outperformed the Zacks Consumer Staples sector’s increase of 3.3% during the same period. Let’s dive deeper. Strategic Growth Efforts
Pilgrim's Pride is benefiting from its customer-centric approach, which propelled it to come up with unique offerings that provide competitive advantages. In fact, the company’s focus on key customers is a pathway for refining its portfolio along with creating competitive advantages over its peers, especially amid the coronavirus-led disruptions. Additionally, the company is steadily augmenting marketing support of its brands, as they expand and enter new regions.
Apart from this, Pilgrim's Pride resorts to frequent supply chain improvements to enhance efficiency and reduce costs. In this respect, it has been progressing well with developing automation technology for its processing plants. Introduction of such advanced technology is expected to increase efficiency and aid in combating labor availability issues. Moreover, the company’s dedicated efforts, including zero-base budgeting and positive impacts from acquisitions are expected to create synergies. Other Growth Drives
Pilgrim’s Pride consistently strives to improve portfolio and strengthen competitive position through innovations. In this respect, the company is expanding in the fresh food offerings space. Further, it is on track to expand gluten-free products. Also, the company is increasing its product mix for organic category, including No-Antibiotics-Ever products to cater customers' evolving tastes. Additionally, Pilgrim’s Pride is expanding breast meat portioning capacity along with increasing dark meat debone capabilities to mitigate its exposure to volatility of pure commodity market.
Moreover, Pilgrim’s Pride European business is performing well for a while. Notably, revenues from European operations surged 63.4% year over year in the third quarter of 2020. The uptick was driven by robust retail demand amid COVID-19. Also, better operational efficiencies as well as solid pork exports to China were an upside. Apart from these, improved momentum from the recently-acquired European pork assets contributed to the upside. In fact, strength in the European business also aided its third-quarter results, with the top and the bottom line increasing year over year. Also, earnings surpassed the Zacks Consensus Estimate in the quarter. We believe that impressive growth in the European business along with the aforementioned upsides is likely to keep driving Pilgrim’s Pride performance. More Solid Food Bets United Natural Foods ( UNFI Quick Quote UNFI - Free Report) , with a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 4.8%, on average. You can see . the complete list of today’s Zacks #1 Rank stocks here Blue Apron Holdings ( APRN Quick Quote APRN - Free Report) , with a Zacks Rank #2, has a trailing four-quarter earnings surprise of 30.3%, on average. The Hain Celestial ( HAIN Quick Quote HAIN - Free Report) , with a Zacks Rank #2, has a trailing four-quarter earnings surprise of 24.6%, on average. Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>