Simply Good Foods (SMPL) closed at $29.63 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500’s daily gain of 0.06%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Heading into today, shares of the nutritional foods company had gained 12.43% over the past month, outpacing the Consumer Staples sector’s loss of 1.57% and the S&P 500’s loss of 2.95% in that time.
SMPL will be looking to display strength as it nears its next earnings release. In that report, analysts expect SMPL to post earnings of $0.16 per share. This would mark year-over-year growth of 6.67%. Meanwhile, our latest consensus estimate is calling for revenue of $130.57 million, up 20.61% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.69 per share and revenue of $515.39 million, which would represent changes of +18.97% and +19.46%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for SMPL. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SMPL is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SMPL is currently trading at a Forward P/E ratio of 43.3. This valuation marks a premium compared to its industry’s average Forward P/E of 27.52.
The Food – Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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