Zacks Investment Research upgraded
Pilgrim's Pride Corporation
) to a Zacks Rank #1 (Strong Buy) on May 6, based on its impressive
first quarter 2014 results and a strong outlook for the year
Why the Upgrade?
Pilgrim's Pride reported improved year-over-year results for the
first quarter of 2014. Earnings per share came in at 38 cents,
improving 81% year over year on the back of lower cost of sales in
the quarter. However, reported revenues were $2.02 billion,
marginally lower than the prior-year quarter.
The company has been attempting to reduce its costs over the
past few quarters. In the recently reported quarter, earnings
before interest, taxes, depreciation and amortization (EBITDA)
increased roughly 74% year over year to $203.5 million, due to
effective cost management.
Subsequent to the results, the Zacks Consensus Estimate for
earnings per share increased 15.5% to $1.79 for 2014, while the
same for 2015 increased 21.7% to $1.57, over the past seven days.
Pilgrim's Pride currently has an
of +7.02% for the second quarter 2014 and +8.94% for full year
The effective working capital management has helped the company
to reduce its debt, diminish the capital cost and increase the free
cash flow. The company is expected to be able to reap the benefits
of an improving chicken industry in 2014 and thereby enhance the
Other Stocks to Consider
Apart from Pilgrim's Pride, other stocks in the industry having
a favorable Zacks Rank include
Sanderson Farms, Inc.
Fresh Del Monte Produce Inc.
). All these stocks hold the same Zacks Rank as Pilgrim's
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BRF-BRASIL FOOD (BRFS): Free Stock Analysis
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