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BRF (BRFS) Exceeds Market Returns: Some Facts to Consider

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In the latest market close, BRF (BRFS - Free Report) reached $4, with a +0.76% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.

Prior to today's trading, shares of the chicken, beef and pork producer had gained 15.41% over the past month. This has outpaced the Consumer Staples sector's loss of 0.35% and the S&P 500's loss of 0.84% in that time.

The upcoming earnings release of BRF will be of great interest to investors. The company's upcoming EPS is projected at $0.09, signifying a 50% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.35 per share and revenue of $10.97 billion, indicating changes of -2.78% and +0.25%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for BRF. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BRF is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, BRF currently has a Forward P/E ratio of 11.34. For comparison, its industry has an average Forward P/E of 15.47, which means BRF is trading at a discount to the group.

Meanwhile, BRFS's PEG ratio is currently 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 1.71 at yesterday's closing price.

The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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