PPC Stock Rises 13.2% in Three Months: What is Next for Investors?

Pilgrim's Pride Corporation’s PPC shares have gained 13.2% in the past three months, surpassing the industry and the broader S&P 500 index’s decline of 8% and 6.9%, respectively. This strong performance underscores the company’s solid business strategies and market positioning.

PPC Stock Past Three Months Performance

PPC stock last traded at $51.53 and sits 9.8% below its 52-week high of $57.16, reached on Feb. 14, 2025. This recent pullback may offer a compelling opportunity for investors seeking exposure to a well-positioned player in the food production space with long-term growth potential.

From a technical perspective, PPC is showing solid momentum. The stock remains above its 200-day moving average, a sign of underlying strength and bullish sentiment. This technical positioning reinforces investor confidence in the company’s financial stability and outlook.

PPC Leverages Consumer Trends to Strengthen Market Position

Pilgrim’s Pride continues to benefit from growing consumer demand for chicken across both retail and foodservice channels. In the fourth quarter of 2024, PPC posted adjusted earnings of $1.35 per share, up sharply from 59 cents a year ago. This growth was supported by improved production efficiency, higher margins and a favorable supply-demand environment in the protein market.

The company’s Big Bird segment achieved notable profitability due to lower grain costs and operational improvements in the fourth quarter. Case Ready outpaced category growth thanks to robust demand and process enhancements, while Small Bird sales surged with strong momentum from quick-service restaurants (QSR) and deli channels. With the USDA forecasting just 1.4% growth in U.S. chicken production for 2025, PPC is well-positioned to benefit from tight supply and firm pricing.

PPC Expands Foodservice Reach to Capture Demand Shift

Pilgrim’s Pride is expanding its foodservice distribution network as consumers increasingly opt for value-oriented dining experiences. The company has seen strong volume growth in QSRs, reinforcing the success of its Small Bird and Case Ready offerings in meeting fast-evolving foodservice needs.

By strategically aligning its supply-chain and production capabilities, PPC ensures the efficient delivery of high-quality poultry products. The company’s focus on higher-margin channels and responsiveness to market trends has strengthened its share in the foodservice sector, with continued growth potential as chicken remains central to menu innovation.

PPC Boasts Attractive Valuation

The company is currently trading at a discount to its industry benchmarks. PPC stock trades at a forward 12-month price-to-earnings ratio of 10.14, lower than the industry’s average of 12.9. This suggests that PPC may be undervalued relative to its earnings potential, presenting an attractive opportunity for investors. The company's current Value Score of A further highlights its potential for long-term growth.

PPC P/E Ratio (Forward 12 Months)

What Should be Your Move on PPC?

Pilgrim’s Pride has demonstrated strong operational performance, strategic expansion in high-demand channels and solid earnings growth, all while maintaining an attractive valuation. With supportive consumer trends, disciplined cost management and favorable industry dynamics, PPC appears well-positioned for continued upside. For investors seeking a stable, growth-oriented play in the Consumer-Staples sector, this recent pullback could be a timely opportunity to consider Pilgrim’s Pride. At present, PPC carries a Zacks Rank #2 (Buy).

Other Stocks to Consider

United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

The consensus estimate for United Natural’s current financial-year sales and earnings implies growth of 1.9% and 485.7%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 408.7%, on average.

Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally and presently carries a Zacks Rank of 2. Post Holdings delivered a trailing four-quarter earnings surprise of 22.3%, on average.

The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the year-ago numbers.

Utz Brands UTZ engages in the manufacture, marketing and distribution of snack foods in the United States and presently carries a Zacks Rank of 2. Utz Brands delivered a trailing four-quarter earnings surprise of 8.8%, on average.

The Zacks Consensus Estimate for Utz Brands’ current financial-year sales and earnings indicates growth of 1.2% and 10.4%, respectively, from the year-ago numbers.

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This article originally published on Zacks Investment Research (zacks.com).

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