BRF (BRFS) ended the recent trading session at $3.18, demonstrating a -0.31% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 2.13%. Meanwhile, the Dow experienced a rise of 1.65%, and the technology-dominated Nasdaq saw an increase of 2.61%.
The chicken, beef and pork producer's shares have seen a decrease of 6.45% over the last month, not keeping up with the Consumer Staples sector's gain of 2.27% and outstripping the S&P 500's loss of 9.57%.
Analysts and investors alike will be keeping a close eye on the performance of BRF in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.09, reflecting a 50% increase from the same quarter last year.
BRFS's full-year Zacks Consensus Estimates are calling for earnings of $0.44 per share and revenue of $10.97 billion. These results would represent year-over-year changes of +22.22% and +0.25%, respectively.
Investors should also note any recent changes to analyst estimates for BRF. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.16% higher. BRF is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, BRF is presently trading at a Forward P/E ratio of 7.33. This valuation marks a discount compared to its industry's average Forward P/E of 15.81.
We can also see that BRFS currently has a PEG ratio of 0.18. 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. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 1.96.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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