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BRF (BRFS) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, BRF (BRFS - Free Report) closed at $3.76, marking a -1.31% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.47%, and the technology-centric Nasdaq increased by 0.24%.

Heading into today, shares of the chicken, beef and pork producer had gained 5.54% over the past month, outpacing the Consumer Staples sector's loss of 0.48% and the S&P 500's gain of 4.61%.

The investment community will be paying close attention to the earnings performance of BRF in its upcoming release. The company's earnings per share (EPS) are projected to be $0.11, reflecting no change from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.39 per share and a revenue of $12.15 billion, representing changes of +8.33% and +11.05%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BRF. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, BRF is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, BRF is currently being traded at a Forward P/E ratio of 9.77. This denotes a discount relative to the industry average Forward P/E of 16.97.

Also, we should mention that BRFS has a PEG ratio of 0.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 1.69.

The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 175, this industry ranks in the bottom 30% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


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