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Why the Market Dipped But Pilgrim's Pride (PPC) Gained Today

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Pilgrim's Pride (PPC - Free Report) closed at $45.49 in the latest trading session, marking a +1.13% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.11%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq lost 0.82%.

The stock of poultry producer has fallen by 9.19% in the past month, lagging the Consumer Staples sector's loss of 1.94% and the S&P 500's gain of 5.17%.

The upcoming earnings release of Pilgrim's Pride will be of great interest to investors. The company is forecasted to report an EPS of $1.63, showcasing a 2.4% downward movement from the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.39 per share and revenue of $0 million. These totals would mark changes of -0.55% and 0%, respectively, from last year.

Any recent changes to analyst estimates for Pilgrim's Pride should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, there's been a 0.37% fall in the Zacks Consensus EPS estimate. Pilgrim's Pride is currently a Zacks Rank #4 (Sell).

In terms of valuation, Pilgrim's Pride is currently trading at a Forward P/E ratio of 8.35. This valuation marks 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 has a Zacks Industry Rank of 192, which puts it in the bottom 23% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


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