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BRF (BRFS) Stock Dips While Market Gains: Key Facts

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BRF (BRFS - Free Report) closed the most recent trading day at $3.84, moving -0.78% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq added 0.16%.

Shares of the chicken, beef and pork producer have appreciated by 3.75% over the course of the past month, outperforming the Consumer Staples sector's loss of 0.36% and the S&P 500's gain of 2.83%.

The upcoming earnings release of BRF will be of great interest to investors. The company is forecasted to report an EPS of $0.07, showcasing a 170% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.59 billion, showing a 0.98% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.30 per share and a revenue of $10.8 billion, signifying shifts of +200% and +11.66%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for BRF. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 3.45% higher within the past month. Currently, BRF is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that BRF has a Forward P/E ratio of 12.9 right now. This indicates a discount in contrast to its industry's Forward P/E of 17.1.

Meanwhile, BRFS's PEG ratio is currently 0.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 2.14.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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