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SunOpta (STKL) Gains As Market Dips: What You Should Know

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SunOpta (STKL - Free Report) closed at $3.67 in the latest trading session, marking a +1.38% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.64%. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 1.82%.

Prior to today's trading, shares of the natural and organic food company had lost 18.28% over the past month. This has lagged the Consumer Staples sector's loss of 1.32% and the S&P 500's gain of 0.89% in that time.

SunOpta will be looking to display strength as it nears its next earnings release. On that day, SunOpta is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $215.4 million, down 6.21% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.02 per share and revenue of $885 million. These totals would mark changes of -75% and -5.31%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SunOpta. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 71.43% lower. SunOpta is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, SunOpta currently has a Forward P/E ratio of 181. This valuation marks a premium compared to its industry's average Forward P/E of 15.97.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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