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SunOpta (STKL) Stock Declines While Market Improves: Some Information for Investors

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The most recent trading session ended with SunOpta (STKL - Free Report) standing at $5.81, reflecting a -1.36% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 0.32%.

The natural and organic food company's shares have seen a decrease of 1.17% over the last month, not keeping up with the Consumer Staples sector's gain of 2.56% and the S&P 500's gain of 2.99%.

The investment community will be paying close attention to the earnings performance of SunOpta in its upcoming release. The company is slated to reveal its earnings on February 28, 2024. The company is expected to report EPS of $0.01, down 50% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $165.1 million, showing a 25.39% drop compared to the year-ago quarter.

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

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 3.7% lower. SunOpta presently features a Zacks Rank of #3 (Hold).

In terms of valuation, SunOpta is currently trading at a Forward P/E ratio of 45.31. For comparison, its industry has an average Forward P/E of 17.25, which means SunOpta is trading at a premium to the group.

The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 41% 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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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