In the latest trading session, BRF (BRFS) closed at $4.03, marking a +2.03% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.09%.
Coming into today, shares of the chicken, beef and pork producer had gained 3.67% in the past month. In that same time, the Consumer Staples sector lost 1.44%, while the S&P 500 gained 4.37%.
Market participants will be closely following the financial results of BRF in its upcoming release. The company is forecasted to report an EPS of $0.11, showcasing no movement from the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.39 per share and a revenue of $12.15 billion, representing changes of +8.33% and +11.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BRF. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. BRF presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that BRF has a Forward P/E ratio of 10.13 right now. This expresses a discount compared to the average Forward P/E of 15.4 of its industry.
It is also worth noting that BRFS currently has a PEG ratio of 0.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Food - Miscellaneous industry had an average PEG ratio of 1.61 as trading concluded yesterday.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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BRF S.A. (BRFS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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