Back to top

Image: Bigstock

Why BRF (BRFS) Dipped More Than Broader Market Today

Read MoreHide Full Article

BRF (BRFS - Free Report) closed the most recent trading day at $3.60, moving -1.37% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.11%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq lost 0.82%.

Coming into today, shares of the chicken, beef and pork producer had gained 2.53% in the past month. In that same time, the Consumer Staples sector lost 1.94%, while the S&P 500 gained 5.17%.

Analysts and investors alike will be keeping a close eye on the performance of BRF in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.11, showcasing no movement from the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.39 per share and revenue of $12.15 billion, which would represent changes of +8.33% and +11.05%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for BRF. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BRF is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that BRF has a Forward P/E ratio of 9.36 right now. This signifies a discount in comparison to the average Forward P/E of 15.08 for its industry.

Also, we should mention that BRFS has a PEG ratio of 0.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Food - Miscellaneous industry had an average PEG ratio of 1.6 as trading concluded yesterday.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BRF S.A. (BRFS) - free report >>

Published in