Zacks Investment Research upgraded
Sanderson Farms, Inc.
) to a Zacks Rank #1 (Strong Buy) on May 6, 2014. Going by the
Zacks model, companies holding a Zacks Rank #1 have strong
chances of performing better than the broader market.
Why the Upgrade?
PINNACLE FOODS (PF): Free Stock Analysis
PILGRIMS PRIDE (PPC): Free Stock Analysis
SANDERSON FARMS (SAFM): Free Stock Analysis
WHITEWAVE FOODS (WWAV): Free Stock Analysis
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Market sentiments seem to be working in favor of Sanderson Farms
as denoted by a year-to-date gain of 35.8% in the company's share
price. Also, in the last five years, Sanderson Farms' earnings
grew nearly 18.2% as against a 14% increase recorded for the
In the last reported quarter, Sanderson Farms' earnings were
$1.25 per share, up from a loss of 10 cents per share recorded in
the year-ago quarter and also the Zacks Consensus Estimate of
earnings of 94 cents. The bottom line performance was driven by
lower cost of sales and interest expense that more than offset
1.8% fall in revenues. Gross margin improved 10% year over year.
Strong performance in the past quarters, with a positive average
earnings surprise of 12.94%, have made investors hopeful of
another quarter of upbeat result from this integrated poultry
processing company. Currently, the company has an
of +6.02% for fiscal second quarter 2014 (ended Apr 2014), +4.85%
for fiscal 2014 and +9.14% for fiscal 2015.
Sanderson Farms is likely to release its fiscal second quarter
2014 results on May 29, 2014. In the last 60 days, the Zacks
Consensus Estimate has gone up by 8.2% to $7.01 for fiscal 2014
and by 14.9% to $5.25 for fiscal 2015.
Other Stocks to Consider
Sanderson Farms has a $1.9 billion market capitalization. Other
companies worth considering in the industry include
Pilgrim's Pride Corp.
Pinnacle Foods Inc.
The WhiteWave Foods Co.
). While Pilgrim's Pride holds a Zacks Rank #1 (Strong Buy), both
Pinnacle Foods and WhiteWave Foods carry a Zacks Rank #2