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Pilgrim's Pride (PPC) Laps the Stock Market: Here's Why

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Pilgrim's Pride (PPC - Free Report) ended the recent trading session at $45.75, demonstrating a +1.42% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.24%.

Heading into today, shares of the poultry producer had lost 1.27% over the past month, lagging the Consumer Staples sector's gain of 2.14% and the S&P 500's gain of 6.6%.

The upcoming earnings release of Pilgrim's Pride will be of great interest to investors. The company's upcoming EPS is projected at $1.63, signifying a 2.40% drop compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.39 per share and a revenue of $0 million, representing changes of -0.55% and 0%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Pilgrim's Pride. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 0.37% downward. Pilgrim's Pride currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Pilgrim's Pride is currently being traded at a Forward P/E ratio of 8.38. This represents a discount compared to its industry average Forward P/E of 12.24.

The Food - Meat Products industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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