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Simply Good Foods (SMPL) Dips More Than Broader Markets: What You Should Know

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Simply Good Foods (SMPL - Free Report) closed the most recent trading day at $29.66, moving -0.77% from the previous trading session. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.19%.

Heading into today, shares of the nutritional foods company had gained 12.66% over the past month, outpacing the Consumer Staples sector's gain of 3.44% and the S&P 500's gain of 3.61% in that time.

SMPL will be looking to display strength as it nears its next earnings release. On that day, SMPL is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 6.67%. Our most recent consensus estimate is calling for quarterly revenue of $130.57 million, up 20.61% from the year-ago period.

Investors might also notice recent changes to analyst estimates for SMPL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SMPL is currently a Zacks Rank #4 (Sell).

Digging into valuation, SMPL currently has a Forward P/E ratio of 40.83. Its industry sports an average Forward P/E of 27.68, so we one might conclude that SMPL is trading at a premium comparatively.

The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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


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