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Pilgrim's Pride Corporation (PPC) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Pilgrim's Pride (PPC - Free Report) ? Shares have been on the move with the stock up 10.2% over the past month. The stock hit a new 52-week high of $46.7 in the previous session. Pilgrim's Pride has gained 68.2% since the start of the year compared to the 7.7% move for the Zacks Consumer Staples sector and the 18.7% return for the Zacks Food - Meat Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2024, Pilgrim's Pride reported EPS of $1.67 versus consensus estimate of $1.32.
Valuation Metrics
While Pilgrim's Pride has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Pilgrim's Pride has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.1X. On a trailing cash flow basis, the stock currently trades at 13.3X versus its peer group's average of 8.8X. Additionally, the stock has a PEG ratio of 0.23. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Pilgrim's Pride currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Pilgrim's Pride passes the test. Thus, it seems as though Pilgrim's Pride shares could have potential in the weeks and months to come.
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Pilgrim's Pride Corporation (PPC) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Pilgrim's Pride (PPC - Free Report) ? Shares have been on the move with the stock up 10.2% over the past month. The stock hit a new 52-week high of $46.7 in the previous session. Pilgrim's Pride has gained 68.2% since the start of the year compared to the 7.7% move for the Zacks Consumer Staples sector and the 18.7% return for the Zacks Food - Meat Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2024, Pilgrim's Pride reported EPS of $1.67 versus consensus estimate of $1.32.
Valuation Metrics
While Pilgrim's Pride has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Pilgrim's Pride has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.1X. On a trailing cash flow basis, the stock currently trades at 13.3X versus its peer group's average of 8.8X. Additionally, the stock has a PEG ratio of 0.23. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Pilgrim's Pride currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Pilgrim's Pride passes the test. Thus, it seems as though Pilgrim's Pride shares could have potential in the weeks and months to come.