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Pilgrim's Pride (PPC) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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The most recent trading session ended with Pilgrim's Pride (PPC - Free Report) standing at $43.07, reflecting a +0.14% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.

The the stock of poultry producer has fallen by 4.7% in the past month, lagging the Consumer Staples sector's gain of 1.17% and the S&P 500's gain of 1.65%.

Investors will be eagerly watching for the performance of Pilgrim's Pride in its upcoming earnings disclosure. In that report, analysts expect Pilgrim's Pride to post earnings of $1.28 per share. This would mark year-over-year growth of 120.69%.

It's also important for investors to be aware of any recent modifications to analyst estimates for Pilgrim's Pride. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. Pilgrim's Pride is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Pilgrim's Pride is holding a Forward P/E ratio of 8.98. This denotes a discount relative to the industry's average Forward P/E of 19.95.

We can additionally observe that PPC currently boasts a PEG ratio of 0.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Meat Products industry had an average PEG ratio of 0.42 as trading concluded yesterday.

The Food - Meat Products industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.

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

You can find more information on all of these metrics, and much more, on Zacks.com.


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