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BellRing Brands (BRBR) Laps the Stock Market: Here's Why

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BellRing Brands (BRBR - Free Report) ended the recent trading session at $61.33, demonstrating a +1.98% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.55%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.63%.

Heading into today, shares of the nutritional supplements company had lost 7.68% over the past month, lagging the Consumer Staples sector's gain of 1.91% and the S&P 500's gain of 6.29% in that time.

The investment community will be paying close attention to the earnings performance of BellRing Brands in its upcoming release. The company is predicted to post an EPS of $0.49, indicating a 9.26% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $531.21 million, indicating a 3.07% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.21 per share and a revenue of $2.3 billion, representing changes of +14.51% and +15.21%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for BellRing Brands. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. At present, BellRing Brands boasts a Zacks Rank of #3 (Hold).

Looking at valuation, BellRing Brands is presently trading at a Forward P/E ratio of 27.24. For comparison, its industry has an average Forward P/E of 16.57, which means BellRing Brands is trading at a premium to the group.

It's also important to note that BRBR currently trades at a PEG ratio of 1.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. BRBR's industry had an average PEG ratio of 1.67 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 33% echelons of all 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.

To follow BRBR in the coming trading sessions, be sure to utilize Zacks.com.


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