The most recent trading session ended with BRF (BRFS) standing at $3.47, reflecting a +0.87% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 4.84%. Elsewhere, the Dow saw a downswing of 3.98%, while the tech-heavy Nasdaq depreciated by 5.97%.
Shares of the chicken, beef and pork producer have appreciated by 6.17% over the course of the past month, outperforming the Consumer Staples sector's gain of 5.4% and the S&P 500's loss of 4.7%.
The upcoming earnings release of BRF will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.09, reflecting a 50% increase from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.44 per share and a revenue of $10.97 billion, indicating changes of +22.22% and +0.25%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for BRF. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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 past month, the Zacks Consensus EPS estimate has shifted 1.16% upward. At present, BRF boasts a Zacks Rank of #2 (Buy).
Looking at valuation, BRF is presently trading at a Forward P/E ratio of 7.91. This represents a discount compared to its industry's average Forward P/E of 16.47.
It's also important to note that BRFS currently trades at a PEG ratio of 0.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Food - Miscellaneous industry stood at 2.04 at the close of the market yesterday.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 198, this industry ranks in the bottom 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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