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Pilgrim's Pride Corporation (PPC) Hits Fresh High: Is There Still Room to Run?
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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 17.5% over the past month. The stock hit a new 52-week high of $33.69 in the previous session. Pilgrim's Pride has gained 19.2% since the start of the year compared to the 3.5% move for the Zacks Consumer Staples sector and the 8.3% return for the Zacks Food - Meat Products industry.
What's Driving the Outperformance?
The stock has a great 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 they provide investors with an additional way to sort 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. Investors should consider the style scores a valuable tool that can help you to 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 B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.8X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 8.5X. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Pilgrim's Pride currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
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.
How Does PPC Stack Up to the Competition?
Shares of PPC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Tyson Foods, Inc. (TSN - Free Report) . TSN has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Tyson Foods, Inc. beat our consensus estimate by 64.29%, and for the current fiscal year, TSN is expected to post earnings of $2.34 per share on revenue of $52.76 billion.
Shares of Tyson Foods, Inc. have gained 7.5% over the past month, and currently trade at a forward P/E of 23.88X and a P/CF of 7.64X.
The Food - Meat Products industry is in the top 1% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PPC and TSN, even beyond their own solid fundamental situation.
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Pilgrim's Pride Corporation (PPC) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Pilgrim's Pride (PPC - Free Report) ? Shares have been on the move with the stock up 17.5% over the past month. The stock hit a new 52-week high of $33.69 in the previous session. Pilgrim's Pride has gained 19.2% since the start of the year compared to the 3.5% move for the Zacks Consumer Staples sector and the 8.3% return for the Zacks Food - Meat Products industry.
What's Driving the Outperformance?
The stock has a great 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 they provide investors with an additional way to sort 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. Investors should consider the style scores a valuable tool that can help you to 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 B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.8X. On a trailing cash flow basis, the stock currently trades at 9.4X versus its peer group's average of 8.5X. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Pilgrim's Pride currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
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.
How Does PPC Stack Up to the Competition?
Shares of PPC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Tyson Foods, Inc. (TSN - Free Report) . TSN has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.
Earnings were strong last quarter. Tyson Foods, Inc. beat our consensus estimate by 64.29%, and for the current fiscal year, TSN is expected to post earnings of $2.34 per share on revenue of $52.76 billion.
Shares of Tyson Foods, Inc. have gained 7.5% over the past month, and currently trade at a forward P/E of 23.88X and a P/CF of 7.64X.
The Food - Meat Products industry is in the top 1% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PPC and TSN, even beyond their own solid fundamental situation.