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Simply Good Foods (SMPL) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Simply Good Foods (SMPL - Free Report) closed at $35.60, marking a -0.64% move from the previous day. This move lagged the S&P 500's daily gain of 0.93%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.71%.

Prior to today's trading, shares of the nutritional foods company had lost 9.38% over the past month. This has lagged the Consumer Staples sector's loss of 4.15% and the S&P 500's gain of 4.61% in that time.

Investors will be hoping for strength from Simply Good Foods as it approaches its next earnings release. On that day, Simply Good Foods is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 4.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $321.55 million, up 1.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.61 per share and revenue of $1.24 billion, which would represent changes of +1.26% and +6.09%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Simply Good Foods. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.34% higher within the past month. Simply Good Foods is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Simply Good Foods currently has a Forward P/E ratio of 22.25. This represents a discount compared to its industry's average Forward P/E of 23.63.

The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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