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SunOpta (STKL) Falls More Steeply Than Broader Market: What Investors Need to Know

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SunOpta (STKL - Free Report) ended the recent trading session at $6.66, demonstrating a -1.91% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 1%, and the tech-heavy Nasdaq lost 0.95%.

Shares of the natural and organic food company witnessed a gain of 1.34% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 2.24% and the S&P 500's gain of 2.16%.

The investment community will be closely monitoring the performance of SunOpta in its forthcoming earnings report. The company is predicted to post an EPS of $0.02, indicating a 60% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $164.7 million, reflecting a 26.43% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.13 per share and a revenue of $670 million, representing changes of +62.5% and -12.52%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, SunOpta possesses a Zacks Rank of #4 (Sell).

Looking at valuation, SunOpta is presently trading at a Forward P/E ratio of 54.32. This expresses a premium compared to the average Forward P/E of 17.64 of its industry.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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