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BRF (BRFS) Falls More Steeply Than Broader Market: What Investors Need to Know

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BRF (BRFS - Free Report) closed at $3.52 in the latest trading session, marking a -7.12% move from the prior day. This move lagged the S&P 500's daily loss of 0.37%. On the other hand, the Dow registered a loss of 0.74%, and the technology-centric Nasdaq decreased by 0.03%.

Heading into today, shares of the chicken, beef and pork producer had gained 5.57% over the past month, outpacing the Consumer Staples sector's loss of 1.68% and the S&P 500's gain of 2.68%.

Investors will be eagerly watching for the performance of BRF in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.11, indicating constancy compared to the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $0.39 per share and a revenue of $12.15 billion, demonstrating changes of +8.33% and +11.05%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for BRF. These recent revisions tend to reflect the evolving nature of short-term business trends. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, BRF is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, BRF is currently exchanging hands at a Forward P/E ratio of 9.72. For comparison, its industry has an average Forward P/E of 16.35, which means BRF is trading at a discount to the group.

It is also worth noting that BRFS currently has a PEG ratio of 0.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Food - Miscellaneous industry was having an average PEG ratio of 1.68.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 179, finds itself in the bottom 28% echelons 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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