Sanderson Farms, Inc.
), a meat products company, scaled a new 52-week high of $102.28 on
Jul 11. This marks a nominal increase from the previous high of
$101.17 hit a day earlier.
Sanderson Farms closed the session at $102.01, reflecting a
solid year-to-date return of 41.8%. The trading volume for the
session was 427.2K shares. Upward revisions of the estimates for
the coming quarters indicate further upside potential for the
With mergers and acquisitions on the rise, the meat products
industry has lately been witnessing strong growth momentum. Such
activities have enabled it to acquire a Zacks Industry Rank of 3
out of over 250 industries. From the growth perspective, hence, the
meat products industry is quite well positioned, especially when
compared to other segments out there.
Additionally, rising demand for poultry products is leading to
higher prices for the same. Sanderson Farms experienced an
increased demand for chicken products in fiscal second-quarter 2014
(ended Apr 30, 2014), primarily due to higher prices of competing
Post its fiscal second-quarter 2014 earnings announcement, the
company has been witnessing upward estimates revision. In the past
60 days, the Zacks Consensus Estimate for third quarter of fiscal
2014 has increased 17.1% to $3.01, reflecting year-over-year growth
of 2.2%. Also, the Zacks Consensus Estimate for fiscal 2014 grew
18.2% to $8.58, reflecting year-over-year growth of 51.1%, over the
same time frame.
Other Stocks to Consider
With a market capitalization of $2.4 billion, Sanderson Farms
sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering
in the industry include
Pilgrim's Pride Corporation
The Hillshire Brands Company
). While Pilgrim's Pride sports the same rank as Sanderson Farms,
The Hillshire Brands and JBS S.A. hold a Zacks Rank #2 (Buy).
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