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Pilgrim's Pride (PPC) Up 42.3% YTD: What's Ahead for the Stock?
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Pilgrim's Pride Corporation (PPC - Free Report) has seen a significant rise in its stock price, increasing 42.3% year to date. This performance outpaces the 10.4% growth of the Food - Meat Products industry and the broader Zacks Consumer Staples sector's 3.7% rise. The company has been benefiting from strategic growth initiatives such as focusing on key customers, expanding capacity, strengthening brands, and reducing costs.
Pilgrim’s Pride flaunts an impressive record of earnings surprises, consistently beating earnings consensus estimates in each of the last four quarters. This consistent performance underscores the company's strong operational execution and strategic initiatives, contributing to its significant stock price appreciation and market outperformance.
PPC closed at $39.35 on Jul 19, trading above its 50-day moving average, which is a bullish signal. Notably, the stock reached a fresh 52-week high of $40.21 on Jul 17, indicating strong market confidence and demand.
From the valuation perspective, the company remains attractively valued relative to industry peers. With a forward 12-month price-to-earnings ratio of 9.30, below the industry average of 15.92, the stock presents an appealing opportunity for value-oriented investors. Supported by a robust Value Score of A, Pilgrim's Pride stands poised for potential appreciation, aligning with its strong growth prospects.
Image Source: Zacks Investment Research
Driving Forces Behind the Surge
Pilgrim's Pride is boosting marketing support as it expands into new regions and is enhancing supply chain efficiency. The company is also developing automation technology for its processing plants to increase efficiency and address labor shortages. These efforts are aimed at maintaining competitiveness and reducing operational costs.
The company is investing in high-return capital-employed projects and actively seeking M&A opportunities to diversify its portfolio across different segments and geographies. These strategic moves aim to enhance profitability and broaden market presence.
PPC has seen strong performance in Mexico thanks to balanced supply and demand, favorable exchange rates, and effective strategies. The company achieved improved results through diversified brand offerings and a 13% increase in key customer collaborations despite market challenges.
Moreover, the company’s European segment is performing well with successful integration efforts. It enhances labor efficiency, optimizes product mix and improves yields. The diverse portfolio includes fresh pork, bacon, sausage, gammon and chicken, with increased demand for chicken, bacon, sausage and gammon observed this quarter.
Pilgrim's Pride has sustained positive momentum in the food service distribution channel, with increased volume and sales across both commercial and non-commercial subchannels in the first quarter. This robust performance highlights the company's resilience and effectiveness in catering to a diverse customer base in the food service industry.
Wrapping Up
The positive outlook for Pilgrim's Pride is evident in the Zacks Consensus Estimate revisions. The earnings per share estimate for the current fiscal year has been increased by 16.8% to $4.25 over the past 60 days. The consensus mark indicates a substantial increase of 151.5% from the year-ago period. Additionally, the estimate for the next fiscal year has risen by 21.6% to $4.22 per share over the past 60 days.
Given the strong performance across various segments, positive earnings revisions, and effective strategic initiatives, this Zacks Ranks #2 (Buy) company appears to be a compelling candidate for portfolio consideration.
3 Other Picks You Can’t Miss
Here, we have highlighted three other top-ranked stocks, namely, Vital Farms (VITL - Free Report) , Ollie's Bargain Outlet (OLLI - Free Report) and Colgate-Palmolive (CL - Free Report)
Vital Farms offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.6% and 64.4%, respectively, from the year-ago reported numbers.
Ollie's Bargain, the extreme-value retailer of brand-name merchandise, currently sports a Zacks Rank #1. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and earnings indicates a rise of around 7.9% and 12.3%, respectively, from the year-earlier levels.
Colgate-Palmolive, which manufactures and sells consumer products, currently carries a Zacks Rank #2. CL delivered an earnings surprise of 4.4% in the trailing four quarters, on average.
The Zacks Consensus Estimate for Colgate-Palmolive’s current fiscal-year sales and earnings suggests growth of 3.8% and nearly 9.6%, respectively, from the year-ago reported numbers.
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Pilgrim's Pride (PPC) Up 42.3% YTD: What's Ahead for the Stock?
Pilgrim's Pride Corporation (PPC - Free Report) has seen a significant rise in its stock price, increasing 42.3% year to date. This performance outpaces the 10.4% growth of the Food - Meat Products industry and the broader Zacks Consumer Staples sector's 3.7% rise. The company has been benefiting from strategic growth initiatives such as focusing on key customers, expanding capacity, strengthening brands, and reducing costs.
Pilgrim’s Pride flaunts an impressive record of earnings surprises, consistently beating earnings consensus estimates in each of the last four quarters. This consistent performance underscores the company's strong operational execution and strategic initiatives, contributing to its significant stock price appreciation and market outperformance.
PPC closed at $39.35 on Jul 19, trading above its 50-day moving average, which is a bullish signal. Notably, the stock reached a fresh 52-week high of $40.21 on Jul 17, indicating strong market confidence and demand.
From the valuation perspective, the company remains attractively valued relative to industry peers. With a forward 12-month price-to-earnings ratio of 9.30, below the industry average of 15.92, the stock presents an appealing opportunity for value-oriented investors. Supported by a robust Value Score of A, Pilgrim's Pride stands poised for potential appreciation, aligning with its strong growth prospects.
Image Source: Zacks Investment Research
Driving Forces Behind the Surge
Pilgrim's Pride is boosting marketing support as it expands into new regions and is enhancing supply chain efficiency. The company is also developing automation technology for its processing plants to increase efficiency and address labor shortages. These efforts are aimed at maintaining competitiveness and reducing operational costs.
The company is investing in high-return capital-employed projects and actively seeking M&A opportunities to diversify its portfolio across different segments and geographies. These strategic moves aim to enhance profitability and broaden market presence.
PPC has seen strong performance in Mexico thanks to balanced supply and demand, favorable exchange rates, and effective strategies. The company achieved improved results through diversified brand offerings and a 13% increase in key customer collaborations despite market challenges.
Moreover, the company’s European segment is performing well with successful integration efforts. It enhances labor efficiency, optimizes product mix and improves yields. The diverse portfolio includes fresh pork, bacon, sausage, gammon and chicken, with increased demand for chicken, bacon, sausage and gammon observed this quarter.
Pilgrim's Pride has sustained positive momentum in the food service distribution channel, with increased volume and sales across both commercial and non-commercial subchannels in the first quarter. This robust performance highlights the company's resilience and effectiveness in catering to a diverse customer base in the food service industry.
Wrapping Up
The positive outlook for Pilgrim's Pride is evident in the Zacks Consensus Estimate revisions. The earnings per share estimate for the current fiscal year has been increased by 16.8% to $4.25 over the past 60 days. The consensus mark indicates a substantial increase of 151.5% from the year-ago period. Additionally, the estimate for the next fiscal year has risen by 21.6% to $4.22 per share over the past 60 days.
Given the strong performance across various segments, positive earnings revisions, and effective strategic initiatives, this Zacks Ranks #2 (Buy) company appears to be a compelling candidate for portfolio consideration.
3 Other Picks You Can’t Miss
Here, we have highlighted three other top-ranked stocks, namely, Vital Farms (VITL - Free Report) , Ollie's Bargain Outlet (OLLI - Free Report) and Colgate-Palmolive (CL - Free Report)
Vital Farms offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.6% and 64.4%, respectively, from the year-ago reported numbers.
Ollie's Bargain, the extreme-value retailer of brand-name merchandise, currently sports a Zacks Rank #1. OLLI has a trailing four-quarter earnings surprise of 10.4%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and earnings indicates a rise of around 7.9% and 12.3%, respectively, from the year-earlier levels.
Colgate-Palmolive, which manufactures and sells consumer products, currently carries a Zacks Rank #2. CL delivered an earnings surprise of 4.4% in the trailing four quarters, on average.
The Zacks Consensus Estimate for Colgate-Palmolive’s current fiscal-year sales and earnings suggests growth of 3.8% and nearly 9.6%, respectively, from the year-ago reported numbers.