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Here's Why Pilgrim's Pride (PPC) is Well-Poised to Thrive

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Pilgrim’s Pride (PPC - Free Report) , one of the widely recognized names in poultry producers, has demonstrated unwavering commitment to achieving consistent execution of operational excellence. The company has been focused on portfolio diversification and fueling growth with Key Customers. This resolute approach has proved invaluable in navigating volatile market conditions.

Let’s Introspect

Pilgrim's Pride's success is attributed to its customer-centric approach and strategic initiatives, which aim to provide competitive advantages. The U.K. and Europe business is set to maintain the company’s impressive margin growth trajectory, driven by the advantages stemming from an ongoing manufacturing network optimization program, strong growth with Key Customers, and synergies from back-office integration. As far as the company’s Mexico business is concerned, it is seeing a more balanced supply and demand.

PPC is benefiting from the recovery in the Foodservice business. Although food service channel revenues dipped due to lower pricing, volume sales increased, particularly in breast meat, indicating a favorable supply-demand balance. Non-commercial distribution channels also showed signs of recovery, with increased volumes and higher prices in the value-added category.


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Pilgrim's Pride's marketing support for its brands and supply-chain improvements further enhance efficiency. With a disciplined capital allocation approach and a focus on high-return projects, the company seeks to accelerate organic growth, and remains open to potential mergers and acquisitions to broaden its portfolio.

The company remains resolute in its commitment to profitable growth, with continued investments in automation, the expansion of the Athens, GA-based facility, and the construction of a state-of-the-art protein conversion plant in South Georgia.

Additionally, addressing cost challenges is crucial for Pilgrim's Pride to maintain its competitiveness and profitability in the market. The company deals with several cost-related difficulties. These include rising raw material costs, increased labor expenses, supply-chain disruptions and inflationary pressures.

Markedly, shares of this Zacks Rank #3 (Hold) company have advanced 11.3% in the past three months against the industry’s growth of 4.4%. This stock also outpaced the consumer staple sector’s decline of 2.5%.

3 Hot Stocks to Consider

We have highlighted three better-ranked stocks, namely J&J Snack Foods Corporation (JJSF - Free Report) , Molson Coors (TAP - Free Report) and Utz Brands Inc. (UTZ - Free Report) .

J&J Snack Foods, which is an American manufacturer, marketer, and distributor of branded niche snack foods and frozen beverages, currently sports a Zacks Rank #1 (Strong Buy). JJSF has a trailing four-quarter earnings surprise of 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for J&J Snack Foods’ current fiscal-year sales and earnings suggests growth of 11.1% and 62.3%, respectively, from the year-ago reported numbers.

Molson Coors, a global manufacturer and seller of beer and other beverage products, currently flaunts a Zacks Rank #1. The company has an expected EPS growth rate of 7.3% for three-five years.

The Zacks Consensus Estimate for Molson Coors’ current financial-year sales and EPS suggests growth of 9.3% and 23.7%, respectively, from the year-ago reported figures. TAP has a trailing four-quarter earnings surprise of 34.2%, on average.

Utz Brands, which manufactures a diverse portfolio of salty snacks, currently has a Zacks Rank #2 (Buy). UTZ’s expected EPS growth rate for three to five years is 10.4%.

The Zacks Consensus Estimate for Utz Brands’ current fiscal-year sales suggests growth of 3.5% from the year-ago reported number. UTZ has a trailing four-quarter earnings surprise of 16.9%, on average.

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