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Simply Good Foods (SMPL) Outpaces Stock Market Gains: What You Should Know

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Simply Good Foods (SMPL - Free Report) closed at $39.87 in the latest trading session, marking a +0.83% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 5.74%.

Heading into today, shares of the nutritional foods company had gained 10.76% over the past month, outpacing the Consumer Staples sector's gain of 1.77% and the S&P 500's gain of 0.85% in that time.

Investors will be hoping for strength from Simply Good Foods as it approaches its next earnings release. On that day, Simply Good Foods is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 4.55%. Our most recent consensus estimate is calling for quarterly revenue of $320.98 million, up 1.4% from the year-ago period.

SMPL's full-year Zacks Consensus Estimates are calling for earnings of $1.60 per share and revenue of $1.24 billion. These results would represent year-over-year changes of +0.63% and +6.12%, respectively.

Investors might also notice recent changes to analyst estimates for Simply Good Foods. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 has moved 0.67% lower. Simply Good Foods currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Simply Good Foods is currently trading at a Forward P/E ratio of 24.65. Its industry sports an average Forward P/E of 24.65, so we one might conclude that Simply Good Foods is trading at a no noticeable deviation comparatively.

The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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.

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