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SunOpta (STKL) Dips More Than Broader Market: What You Should Know

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The most recent trading session ended with SunOpta (STKL - Free Report) standing at $3.24, reflecting a -1.22% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Heading into today, shares of the natural and organic food company had lost 15.9% over the past month, lagging the Consumer Staples sector's loss of 6.39% and the S&P 500's loss of 5.53% in that time.

The investment community will be closely monitoring the performance of SunOpta in its forthcoming earnings report. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $215.4 million, down 6.21% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.02 per share and revenue of $885 million, indicating changes of -75% and -5.31%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for SunOpta. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. SunOpta is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, SunOpta is currently trading at a Forward P/E ratio of 164. This expresses a premium compared to the average Forward P/E of 14.89 of its industry.

The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 40% of over 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.

To follow STKL in the coming trading sessions, be sure to utilize Zacks.com.


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