In the latest trading session, BRF (BRFS) closed at $3.44, marking a +0.88% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.55%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Shares of the chicken, beef and pork producer have appreciated by 11.07% over the course of the past month, outperforming the Consumer Staples sector's gain of 0.24% and the S&P 500's loss of 6.22%.
Analysts and investors alike will be keeping a close eye on the performance of BRF in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.09, indicating a 50% growth compared to the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.44 per share and revenue of $10.97 billion, which would represent changes of +22.22% and +0.25%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for BRF. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.16% upward. Right now, BRF possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that BRF has a Forward P/E ratio of 7.84 right now. This indicates a discount in contrast to its industry's Forward P/E of 16.54.
We can additionally observe that BRFS currently boasts a PEG ratio of 0.19. 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. As the market closed yesterday, the Food - Miscellaneous industry was having an average PEG ratio of 1.94.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 32% of all industries, numbering over 250.
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.
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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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