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Pilgrim's Pride (PPC) Registers a Bigger Fall Than the Market: Important Facts to Note

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Pilgrim's Pride (PPC - Free Report) closed the most recent trading day at $45.44, moving -1% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.51%.

Prior to today's trading, shares of the poultry producer had lost 6.69% lagged the Consumer Staples sector's loss of 1.34% and the S&P 500's gain of 0.45%.

Market participants will be closely following the financial results of Pilgrim's Pride in its upcoming release. It is anticipated that the company will report an EPS of $1.63, marking a 2.4% fall compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.39 per share and a revenue of $0 million, indicating changes of -0.55% and 0%, respectively, from the former 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.37% lower within the past month. As of now, Pilgrim's Pride holds a Zacks Rank of #3 (Hold).

With respect to valuation, Pilgrim's Pride is currently being traded at a Forward P/E ratio of 8.52. For comparison, its industry has an average Forward P/E of 12.24, which means Pilgrim's Pride is trading at a discount to the group.

The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 31% 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.

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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