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B&G Foods (BGS) Stock Sinks As Market Gains: What You Should Know

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B&G Foods (BGS - Free Report) closed at $29.58 in the latest trading session, marking a -0.14% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.55%.

Prior to today's trading, shares of the food producer had lost 4.14% over the past month. This has lagged the Consumer Staples sector's loss of 2.53% and the S&P 500's gain of 3.99% in that time.

BGS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.44, up 57.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $525.63 million, up 11.8% from the year-ago period.

Investors might also notice recent changes to analyst estimates for BGS. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BGS is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, BGS currently has a Forward P/E ratio of 12.29. For comparison, its industry has an average Forward P/E of 20.16, which means BGS is trading at a discount to the group.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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