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SunOpta (STKL) Beats Stock Market Upswing: What Investors Need to Know

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SunOpta (STKL - Free Report) ended the recent trading session at $6.21, demonstrating a +1.97% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.24%.

Shares of the natural and organic food company have appreciated by 12.57% over the course of the past month, outperforming the Consumer Staples sector's gain of 1.53% and the S&P 500's gain of 6.45%.

The investment community will be closely monitoring the performance of SunOpta in its forthcoming earnings report. The company is scheduled to release its earnings on February 28, 2024. The company is predicted to post an EPS of $0.01, indicating a 50% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $165.1 million, indicating a 25.39% decline compared to the corresponding quarter of the prior year.

It is also important to note the recent changes to analyst estimates for SunOpta. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.7% lower. SunOpta presently features a Zacks Rank of #4 (Sell).

With respect to valuation, SunOpta is currently being traded at a Forward P/E ratio of 46.85. This valuation marks a premium compared to its industry's average Forward P/E of 17.03.

The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 115, positioning it in the top 46% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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