Shares of Pilgrim's Pride Corporation (PPC) reached a new 52-week high of $38.64 during its trading session on Dec 4. This apex improved upon the last 52-week high of $37.02 hit on Dec 3.
Pilgrim's Pride Corporation closed the session at $37.59, reflecting a solid year-to-date return of 131.3%. The trading volume for the session was 3.4 million shares. Earnings estimate revisions for 2014 and 2015 indicate further upward potential for this food products company.
Growth Drivers
Pilgrim's Pride Corporation’s better-than-expected performance in third-quarter 2014 has made investors optimistic about the company’s growth prospects. Shares have risen by 38% since the earnings release on Oct 29, while earnings estimates have been revised upwards. A brief discussion on third-quarter results is provided below:
Earnings came in at 99 cents per share, way ahead of 62 cents earned in the year-ago quarter and nearly 16.5% above the Zacks Consensus Estimate of 85 cents. Revenues grew 5.8% year over year on the back of strong sales in the U.S and Mexico. Gross margin improved 890 basis points year over year to 19.9%.
In the quarters ahead, Pilgrim's Pride Corporation expects to invest in projects with solid paybacks as well as benefit from growing demand for food products. Currently, the company has an Earnings ESP of +2.14% for 2014 and +2.95% for 2015.
Estimate Revisions Show Potency
Over the last 60 days, the Zacks Consensus Estimate for Pilgrim's Pride Corporation grew 16.1% to $2.81 for 2014 and 23.5% to $3.05 for 2015. These estimates reflect year-over-year growth of 32.3% and 8.6%, respectively.
With a market capitalization of $9.7 billion, Pilgrim's Pride Corporation currently sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the foods industry include Sanderson Farms, Inc. (SAFM), Natural Grocers by Vitamin Cottage, Inc. (NGVC) and Sprouts Farmers Market, Inc. (SFM). All these stocks carry a Zacks Rank #2 (Buy).
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