How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Sanderson Farms ten years ago? It may not have been easy to hold on to SAFM for all that time, but if you did, how much would your investment be worth today?
Sanderson Farms' Business In-Depth
With that in mind, let's take a look at Sanderson Farms' main business drivers.
Based in Mississippi, Sanderson Farms, Inc. is a poultry processing company that produces, processes, markets and distributes fresh and frozen chicken products. In addition to this, the company sells ice pack, chill pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern and western United States, and to customers who resell frozen chicken into export markets.
The company operates 11 hatcheries, 9 feed mills and 12 processing plants, and 1 prepared chicken plant.
In fiscal 2020, the company processed approximately 657 million chickens or around 4.8 billion dressed pounds. As per industry statistics of 2020, Sanderson Farms was the third largest processor of dressed chicken in the United States based on average weekly processed pounds. The three largest customer markets in the fresh and frozen chicken industry are chill-pack retail, big bird and small birds.
The company produces a wide range of processed chicken products and prepared chicken items.
Sanderson Farms adds additional value to the processed chicken by deep chilling and packaging whole chickens in bags or combinations of fresh chicken parts, including boneless product, in various sized, individual trays under its brand name.
Sanderson Farms’ chicken products are sold primarily to retailers and distributors located mainly in the southeastern, southwestern, northeastern and western United States. Also, the company sells its chicken products to casual dining operators, foreign customers, and United States based customers who resell the products outside of the continental United States.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Sanderson Farms ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2012 would be worth $3,732.15, or a gain of 273.21%, as of June 3, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 226.81% and the price of gold increased 10.70% over the same time frame in comparison.
Analysts are forecasting more upside for SAFM too.
Shares of Sanderson Farms have outperformed the industry in the past three months. The company benefited from robust execution across live production, sales and processing in the third quarter of fiscal 2021, wherein the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. Results were driven by higher demand and prices for products sold to foodservice customers as well as demand strength for products sold to retail grocery store customers. Additionally, export demand has been favorable. The company continues to invest in boosting offerings and overall product processing capacity. Sanderson Farms has been strengthening its product portfolio by adding to its vast product pipeline. That said, the company's average feed cost per pound increased in the fiscal third quarter, mainly due to corn and soybean prices.
The stock is up 5.76% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.
Image: Bigstock
If You Invested $1000 in Sanderson Farms a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Sanderson Farms ten years ago? It may not have been easy to hold on to SAFM for all that time, but if you did, how much would your investment be worth today?
Sanderson Farms' Business In-Depth
With that in mind, let's take a look at Sanderson Farms' main business drivers.
Based in Mississippi, Sanderson Farms, Inc. is a poultry processing company that produces, processes, markets and distributes fresh and frozen chicken products. In addition to this, the company sells ice pack, chill pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, primarily under the Sanderson Farms brand name to retailers, distributors, and casual dining operators in the southeastern, southwestern, northeastern and western United States, and to customers who resell frozen chicken into export markets.
The company operates 11 hatcheries, 9 feed mills and 12 processing plants, and 1 prepared chicken plant.
In fiscal 2020, the company processed approximately 657 million chickens or around 4.8 billion dressed pounds. As per industry statistics of 2020, Sanderson Farms was the third largest processor of dressed chicken in the United States based on average weekly processed pounds. The three largest customer markets in the fresh and frozen chicken industry are chill-pack retail, big bird and small birds.
The company produces a wide range of processed chicken products and prepared chicken items.
Sanderson Farms adds additional value to the processed chicken by deep chilling and packaging whole chickens in bags or combinations of fresh chicken parts, including boneless product, in various sized, individual trays under its brand name.
Sanderson Farms’ chicken products are sold primarily to retailers and distributors located mainly in the southeastern, southwestern, northeastern and western United States. Also, the company sells its chicken products to casual dining operators, foreign customers, and United States based customers who resell the products outside of the continental United States.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Sanderson Farms ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2012 would be worth $3,732.15, or a gain of 273.21%, as of June 3, 2022, and this return excludes dividends but includes price increases.
The S&P 500 rose 226.81% and the price of gold increased 10.70% over the same time frame in comparison.
Analysts are forecasting more upside for SAFM too.
Shares of Sanderson Farms have outperformed the industry in the past three months. The company benefited from robust execution across live production, sales and processing in the third quarter of fiscal 2021, wherein the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. Results were driven by higher demand and prices for products sold to foodservice customers as well as demand strength for products sold to retail grocery store customers. Additionally, export demand has been favorable. The company continues to invest in boosting offerings and overall product processing capacity. Sanderson Farms has been strengthening its product portfolio by adding to its vast product pipeline. That said, the company's average feed cost per pound increased in the fiscal third quarter, mainly due to corn and soybean prices.
The stock is up 5.76% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022. The consensus estimate has moved up as well.