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SunOpta (STKL) Surpasses Market Returns: Some Facts Worth Knowing

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SunOpta (STKL - Free Report) closed the most recent trading day at $6.10, moving +1.5% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 0.3%.

Shares of the natural and organic food company have appreciated by 7.51% over the course of the past month, outperforming the Consumer Staples sector's gain of 0.32% and the S&P 500's gain of 4.61%.

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. In that report, analysts expect SunOpta to post earnings of $0.01 per share. This would mark a year-over-year decline of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $165.1 million, down 25.39% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for SunOpta. Recent revisions tend to reflect the latest near-term business trends. 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.7% lower. SunOpta is currently sporting a Zacks Rank of #4 (Sell).

Looking at valuation, SunOpta is presently trading at a Forward P/E ratio of 46.23. For comparison, its industry has an average Forward P/E of 17.19, which means SunOpta is trading at a premium to the group.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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