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BRF (BRFS) Increases Yet Falls Behind Market: What Investors Need to Know

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The most recent trading session ended with BRF (BRFS - Free Report) standing at $4.17, reflecting a +0.24% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq added 0.2%.

Shares of the chicken, beef and pork producer witnessed a gain of 23.44% over the previous month, beating the performance of the Consumer Staples sector with its gain of 0.85% and the S&P 500's gain of 3.82%.

Investors will be eagerly watching for the performance of BRF in its upcoming earnings disclosure. On that day, BRF is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 170%. Our most recent consensus estimate is calling for quarterly revenue of $2.55 billion, down 2.62% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.33 per share and revenue of $10.4 billion, which would represent changes of +210% and +7.51%, respectively, from the prior year.

Any recent changes to analyst estimates for BRF should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 12.07% higher. Right now, BRF possesses a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that BRF has a Forward P/E ratio of 12.8 right now. This expresses a discount compared to the average Forward P/E of 16.71 of its industry.

Meanwhile, BRFS's PEG ratio is currently 0.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Food - Miscellaneous industry stood at 2.04 at the close of the market yesterday.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 32% 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.

To follow BRFS in the coming trading sessions, be sure to utilize Zacks.com.


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