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Pilgrim's Pride Corporation (PPC) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Pilgrim's Pride (PPC - Free Report) ? Shares have been on the move with the stock up 12.4% over the past month. The stock hit a new 52-week high of $31.24 in the previous session. Pilgrim's Pride has gained 12.8% since the start of the year compared to the 1.4% move for the Zacks Consumer Staples sector and the 0.3% return for the Zacks Food - Meat Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 26, 2024, Pilgrim's Pride reported EPS of $0.59 versus consensus estimate of $0.42.
Valuation Metrics
Pilgrim's Pride may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Pilgrim's Pride has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.4X. On a trailing cash flow basis, the stock currently trades at 8.9X versus its peer group's average of 8.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Pilgrim's Pride currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Pilgrim's Pride meets the list of requirements. Thus, it seems as though Pilgrim's Pride shares could have potential in the weeks and months to come.
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Pilgrim's Pride Corporation (PPC) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Pilgrim's Pride (PPC - Free Report) ? Shares have been on the move with the stock up 12.4% over the past month. The stock hit a new 52-week high of $31.24 in the previous session. Pilgrim's Pride has gained 12.8% since the start of the year compared to the 1.4% move for the Zacks Consumer Staples sector and the 0.3% return for the Zacks Food - Meat Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 26, 2024, Pilgrim's Pride reported EPS of $0.59 versus consensus estimate of $0.42.
Valuation Metrics
Pilgrim's Pride may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Pilgrim's Pride has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.4X. On a trailing cash flow basis, the stock currently trades at 8.9X versus its peer group's average of 8.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Pilgrim's Pride currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Pilgrim's Pride meets the list of requirements. Thus, it seems as though Pilgrim's Pride shares could have potential in the weeks and months to come.