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In the latest market close, BRF (BRFS) reached $3.67, with a -1.34% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.53%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 0.22%.
The chicken, beef and pork producer's stock has dropped by 12.88% in the past month, falling short of the Consumer Staples sector's loss of 3.04% and the S&P 500's gain of 2.69%.
Analysts and investors alike will be keeping a close eye on the performance of BRF in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.15, marking stability compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.74 billion, indicating a 61.67% upward movement from the same quarter last year.
Any recent changes to analyst estimates for BRF should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.38% upward. Currently, BRF is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, BRF is presently being traded at a Forward P/E ratio of 8.65. This expresses a discount compared to the average Forward P/E of 16.43 of its industry.
It's also important to note that BRFS currently trades at a PEG ratio of 0.21. 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 Food - Miscellaneous industry currently had an average PEG ratio of 2.64 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.