Zacks Investment Research upgraded
Pilgrim's Pride Corporation
) to a Zacks Rank #1 (Strong Buy) on March 16, 2013.
Why the Upgrade?
HORMEL FOODS CP (HRL): Free Stock Analysis
HILLSHIRE BRAND (HSH): Free Stock Analysis
PILGRIMS PRIDE (PPC): Free Stock Analysis
TYSON FOODS A (TSN): Free Stock Analysis
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The company's fourth quarter 2012 proved to be a solid quarter
for Pilgrim's Pride considering the financial results disclosed
by Pilgrim's Pride on February 14, 2013. The company's net
results improved drastically from a loss of 40 cents per share in
the year-ago quarter to earnings of 9 cents per share in the
fourth quarter 2012. Compared with the Zacks Consensus Estimate
of a loss of 8 cents, the net results improved 212.5%.
Revenue increased 19.7% year over year to $2.2 billion due to a
strong product demand as well as an extra working week in the
Talking of costs, mixed results were seen as cost of sales
increased by 16.9% while selling, general and administrative
expenses plummeted 6.3%. The company's focus on improving its
operational efficiency enabled it to realize roughly $210 million
in 2012 and an additional $125 million is expected in 2013.
Pilgrim's Pride's solid financial performances in three out of
four trailing quarters, with an average positive earnings
surprise of 129.3%, raise our optimism for a better quarter
ahead. For the first quarter 2013, we have an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +69.2% while for 2013 Earnings ESP is +12.3%.
Also, the earnings estimate for Pilgrim's Pride has gone up in
the last 30 days. For 2013, the Zacks Consensus Estimate
increased by 23.3% to $1.06 while that for 2014 the estimate went
up 4.3% to $1.22.
Other Stocks to Consider
Pilgrim's Pride Corporation operates in the meat products
industry and currently has a market capitalization of $2.3
billion. Other stocks to watch out for in the industry are
Hillshire Brands Company
), with a Zacks Rank #1 (Strong Buy) and
Hormel Foods Corporation
Tyson Foods, Inc.
), each with a Zacks Rank #2 (Buy).