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Pilgrim's Pride (PPC) Dips More Than Broader Markets: What You Should Know

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Pilgrim's Pride (PPC - Free Report) closed at $29.56 in the latest trading session, marking a -1.5% move from the prior day. This move lagged the S&P 500's daily loss of 1.15%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.34%.

Prior to today's trading, shares of the poultry producer had lost 1.32% over the past month. This has lagged the Consumer Staples sector's loss of 1.02% and was narrower than the S&P 500's loss of 5.08% in that time.

Investors will be hoping for strength from Pilgrim's Pride as it approaches its next earnings release. On that day, Pilgrim's Pride is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 77.78%.

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 company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Pilgrim's Pride is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Pilgrim's Pride's current valuation metrics, including its Forward P/E ratio of 8.07. For comparison, its industry has an average Forward P/E of 9.16, which means Pilgrim's Pride is trading at a discount to the group.

Investors should also note that PPC has a PEG ratio of 0.54 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Meat Products stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.

The Food - Meat Products industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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