How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Sanderson Farms ten years ago? It may not have been easy to hold on to SAFM for all that time, but if you did, how much would your investment be worth today?
Sanderson Farms' Business In-Depth
With that in mind, let's take a look at Sanderson Farms' main business drivers.
Based in Mississippi, Sanderson Farms, Inc. is a poultry processing company that produces, processes, markets and distributes fresh and frozen chicken products. In addition to this, the company sells ice pack, chill pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern and western United States, and to customers who resell frozen chicken into export markets.
The company operates 11 hatcheries, 9 feed mills and 12 processing plants, and 1 prepared chicken plant.
In fiscal 2020, the company processed approximately 657 million chickens or around 4.8 billion dressed pounds. As per industry statistics of 2020, Sanderson Farms was the third largest processor of dressed chicken in the United States based on average weekly processed pounds. The three largest customer markets in the fresh and frozen chicken industry are chill-pack retail, big bird and small birds.
The company produces a wide range of processed chicken products and prepared chicken items.
Sanderson Farms adds additional value to the processed chicken by deep chilling and packaging whole chickens in bags or combinations of fresh chicken parts, including boneless product, in various sized, individual trays under its brand name.
Sanderson Farms’ chicken products are sold primarily to retailers and distributors located mainly in the southeastern, southwestern, northeastern and western United States. Also, the company sells its chicken products to casual dining operators, foreign customers, and United States based customers who resell the products outside of the continental United States.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Sanderson Farms ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $4,041.79, or a gain of 304.18%, as of June 23, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 229.91% and gold's return of 12.07% over the same time frame.
Analysts are forecasting more upside for SAFM too.
Sanderson Farms’ shares have outperformed the industry in the past three months. The company is gaining from favorable demand trends for poultry products sold at retail grocery stores, owing to rise in demand in the foodservice channel. Such trends have favored the company during second-quarter fiscal 2021, with the top and the bottom line increasing year on year. Moreover the quarterly performance gained from export demand recovery, driven by higher crude oil prices and strong liquidity. The company continues to invest in boosting offerings as well as overall product processing capacity. However, elevated feed costs have continued to put pressure on the company, as seen during the second quarter. In fact, management expects feed grain prices to be higher in the second half of fiscal 2021. Moreover, increased SG&A expenses are a concern.
Shares have gained 10.33% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
Image: Bigstock
Here's How Much a $1000 Investment in Sanderson Farms Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Sanderson Farms ten years ago? It may not have been easy to hold on to SAFM for all that time, but if you did, how much would your investment be worth today?
Sanderson Farms' Business In-Depth
With that in mind, let's take a look at Sanderson Farms' main business drivers.
Based in Mississippi, Sanderson Farms, Inc. is a poultry processing company that produces, processes, markets and distributes fresh and frozen chicken products. In addition to this, the company sells ice pack, chill pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern and western United States, and to customers who resell frozen chicken into export markets.
The company operates 11 hatcheries, 9 feed mills and 12 processing plants, and 1 prepared chicken plant.
In fiscal 2020, the company processed approximately 657 million chickens or around 4.8 billion dressed pounds. As per industry statistics of 2020, Sanderson Farms was the third largest processor of dressed chicken in the United States based on average weekly processed pounds. The three largest customer markets in the fresh and frozen chicken industry are chill-pack retail, big bird and small birds.
The company produces a wide range of processed chicken products and prepared chicken items.
Sanderson Farms adds additional value to the processed chicken by deep chilling and packaging whole chickens in bags or combinations of fresh chicken parts, including boneless product, in various sized, individual trays under its brand name.
Sanderson Farms’ chicken products are sold primarily to retailers and distributors located mainly in the southeastern, southwestern, northeastern and western United States. Also, the company sells its chicken products to casual dining operators, foreign customers, and United States based customers who resell the products outside of the continental United States.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Sanderson Farms ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $4,041.79, or a gain of 304.18%, as of June 23, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 229.91% and gold's return of 12.07% over the same time frame.
Analysts are forecasting more upside for SAFM too.
Sanderson Farms’ shares have outperformed the industry in the past three months. The company is gaining from favorable demand trends for poultry products sold at retail grocery stores, owing to rise in demand in the foodservice channel. Such trends have favored the company during second-quarter fiscal 2021, with the top and the bottom line increasing year on year. Moreover the quarterly performance gained from export demand recovery, driven by higher crude oil prices and strong liquidity. The company continues to invest in boosting offerings as well as overall product processing capacity. However, elevated feed costs have continued to put pressure on the company, as seen during the second quarter. In fact, management expects feed grain prices to be higher in the second half of fiscal 2021. Moreover, increased SG&A expenses are a concern.
Shares have gained 10.33% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.