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Pilgrim's Pride and Ambarella have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – April 25, 2022 – Zacks Equity Research shares Pilgrim’s Pride (PPC - Free Report) as the Bull of the Day and Ambarella (AMBA - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Brinker International, Inc. (EAT - Free Report) , Chipotle Mexican Grill, Inc. (CMG - Free Report) and Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) .
Pilgrim's Pride is a Zacks Rank #1 (Strong Buy) is a timely name in some recent headlines. There are some stories of food processing plants catching fire / being taken off line that those ideas follow up from a comment President Biden made about food shortages. Investors would be wise to look to the food space to park some capital in the near term. Let's explore more about this stock in this Bull Of The Day article.
Description
Pilgrim's Pride Corporation produces, processes, markets, and distributes fresh, frozen, and value-added chicken and pork products to retailers, distributors, and foodservice operators in the United States. Pilgrim's Pride Corporation sells its products to the foodservice market principally consisting of chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, which comprise primarily grocery store chains, wholesale clubs, and other retail distributors. The company was founded in 1946 and is headquartered in Greeley, Colorado.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PPC, I see three of the last four quarters were beats of the Zacks Consensus Estimate. The beats have been of good size over the course of the last year. The average positive earnings surprise works out to be 24% and that includes a -2% negative surprise.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For PPC, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
The full fiscal year 2022 has moved from $2.65 to $2.78.
Next year has also seen a nice increase from $2.80 to $2.88.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
I see a great valuation for PPC. The forward PE is 9.8x and that is very low considering the 29% topline growth the company posted in the most recent quarter. The price to book of 2.6x is below the 3x level that keeps value investors interested. The price to sales comes in at 0.45x, and I normally like to see that number above 1x as it tells me that the market places value on each dollar of sales.
Ambarella is a Zacks Rank #5 (Strong Sell) despite beating the number in the most recent earnings release. Chip stocks have had a very difficult time over the last few years. Let's look at why this stock is a Zacks Rank #5 (Strong Sell) and in this Bear of the Day article.
Description
Headquartered in Santa Clara, CA, Ambarella Inc. develops video compression and image processing semiconductors, which enables high-definition or HD video capture, share and display. Ambarella's system-on-a-chip (SoC) designs integrate HD video processing, image processing, audio processing, and system functions onto a single chip, which helps in delivering exceptional video and image quality at high compression rates, differentiated functionality and low power consumption.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of AMBA, I see four straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For AMBA I see annual estimates moving lower.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is mixed for those numbers.
The current year 2022 consensus number has dropped from $1.89 to $1.74.
The next year has dropped from $2.44 to $2.25 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
What to Expect from Brinker (EAT - Free Report) on Q3 Earnings
Brinker International, Inc. is likely to register an improvement in earnings when it reports third-quarter fiscal 2022 results. In the last reported quarter, the company delivered an earnings surprise of 42%. It has a trailing four-quarter earnings surprise of 10.5%, on average.
Q3 Estimates
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 99 cents per share, compared with the prior-year quarter earnings per share of 78 cents. The consensus mark for quarterly revenues is pegged at $976.1 million, suggesting growth of 17.8% from the year-ago quarter's figure.
Factors to Note
Brinker International's third-quarter fiscal 2022 results are likely to reflect benefits from sale-building efforts. Robust traffic and expansion efforts bode well. Robust Chili's and Maggiano's revenues might have driven the top line.
The company's goal of driving traffic and revenues through a range of sales-building initiatives such as streamlining the menu and its innovation, strengthening its value proposition, better food presentation, advertising campaigns, kitchen system optimization and introducing of better service platform may have contributed to the to-be-reported quarter's performance.
Its expansion efforts are likely to have driven the top line. During the first and the second quarter of fiscal 2022, the company opened four and seven restaurants, respectively. During fiscal 2022, Brinker International expects to open 17-20 restaurants. The company has been witnessing pent-up demand for dine-in experience on the back of a ramped-up vaccination drive and easing of capacity restrictions. To this end, additional team members are being hired to support higher volumes.
The Zacks Consensus Estimate for company sales Chili's and Maggiano's are pegged at $861 million and $92 million, up 15% and 41.5% year over year, respectively.
Our proven model doesn't conclusively predict an earnings beat for Brinker International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Brinker International has an Earnings ESP of -0.11%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Here are a couple stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:
Chipotle Mexican Grill, Inc. has an Earnings ESP of +1.08% and a Zacks Rank #3.
Shares of Chipotle have gained 3.6% in the past year. CMG's earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 11.2%.
Cracker Barrel Old Country Store, Inc. has an Earnings ESP of +11.33% and a Zacks Rank #3.
Shares of Cracker Barrel have declined 24.6% in the past year. CBRL has a trailing four-quarter earnings surprise of 350.5%, on average.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Pilgrim's Pride and Ambarella have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 25, 2022 – Zacks Equity Research shares Pilgrim’s Pride (PPC - Free Report) as the Bull of the Day and Ambarella (AMBA - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Brinker International, Inc. (EAT - Free Report) , Chipotle Mexican Grill, Inc. (CMG - Free Report) and Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Pilgrim's Pride is a Zacks Rank #1 (Strong Buy) is a timely name in some recent headlines. There are some stories of food processing plants catching fire / being taken off line that those ideas follow up from a comment President Biden made about food shortages. Investors would be wise to look to the food space to park some capital in the near term. Let's explore more about this stock in this Bull Of The Day article.
Description
Pilgrim's Pride Corporation produces, processes, markets, and distributes fresh, frozen, and value-added chicken and pork products to retailers, distributors, and foodservice operators in the United States. Pilgrim's Pride Corporation sells its products to the foodservice market principally consisting of chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, which comprise primarily grocery store chains, wholesale clubs, and other retail distributors. The company was founded in 1946 and is headquartered in Greeley, Colorado.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PPC, I see three of the last four quarters were beats of the Zacks Consensus Estimate. The beats have been of good size over the course of the last year. The average positive earnings surprise works out to be 24% and that includes a -2% negative surprise.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For PPC, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
The full fiscal year 2022 has moved from $2.65 to $2.78.
Next year has also seen a nice increase from $2.80 to $2.88.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
I see a great valuation for PPC. The forward PE is 9.8x and that is very low considering the 29% topline growth the company posted in the most recent quarter. The price to book of 2.6x is below the 3x level that keeps value investors interested. The price to sales comes in at 0.45x, and I normally like to see that number above 1x as it tells me that the market places value on each dollar of sales.
Bear of the Day:
Ambarella is a Zacks Rank #5 (Strong Sell) despite beating the number in the most recent earnings release. Chip stocks have had a very difficult time over the last few years. Let's look at why this stock is a Zacks Rank #5 (Strong Sell) and in this Bear of the Day article.
Description
Headquartered in Santa Clara, CA, Ambarella Inc. develops video compression and image processing semiconductors, which enables high-definition or HD video capture, share and display. Ambarella's system-on-a-chip (SoC) designs integrate HD video processing, image processing, audio processing, and system functions onto a single chip, which helps in delivering exceptional video and image quality at high compression rates, differentiated functionality and low power consumption.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of AMBA, I see four straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For AMBA I see annual estimates moving lower.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is mixed for those numbers.
The current year 2022 consensus number has dropped from $1.89 to $1.74.
The next year has dropped from $2.44 to $2.25 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
What to Expect from Brinker (EAT - Free Report) on Q3 Earnings
Brinker International, Inc. is likely to register an improvement in earnings when it reports third-quarter fiscal 2022 results. In the last reported quarter, the company delivered an earnings surprise of 42%. It has a trailing four-quarter earnings surprise of 10.5%, on average.
Q3 Estimates
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 99 cents per share, compared with the prior-year quarter earnings per share of 78 cents. The consensus mark for quarterly revenues is pegged at $976.1 million, suggesting growth of 17.8% from the year-ago quarter's figure.
Factors to Note
Brinker International's third-quarter fiscal 2022 results are likely to reflect benefits from sale-building efforts. Robust traffic and expansion efforts bode well. Robust Chili's and Maggiano's revenues might have driven the top line.
The company's goal of driving traffic and revenues through a range of sales-building initiatives such as streamlining the menu and its innovation, strengthening its value proposition, better food presentation, advertising campaigns, kitchen system optimization and introducing of better service platform may have contributed to the to-be-reported quarter's performance.
Its expansion efforts are likely to have driven the top line. During the first and the second quarter of fiscal 2022, the company opened four and seven restaurants, respectively. During fiscal 2022, Brinker International expects to open 17-20 restaurants. The company has been witnessing pent-up demand for dine-in experience on the back of a ramped-up vaccination drive and easing of capacity restrictions. To this end, additional team members are being hired to support higher volumes.
The Zacks Consensus Estimate for company sales Chili's and Maggiano's are pegged at $861 million and $92 million, up 15% and 41.5% year over year, respectively.
Brinker International, Inc. price-eps-surprise | Brinker International, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn't conclusively predict an earnings beat for Brinker International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Brinker International has an Earnings ESP of -0.11%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are a couple stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:
Chipotle Mexican Grill, Inc. has an Earnings ESP of +1.08% and a Zacks Rank #3.
Shares of Chipotle have gained 3.6% in the past year. CMG's earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 11.2%.
Cracker Barrel Old Country Store, Inc. has an Earnings ESP of +11.33% and a Zacks Rank #3.
Shares of Cracker Barrel have declined 24.6% in the past year. CBRL has a trailing four-quarter earnings surprise of 350.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.