Rating Change #2
Pilgrims Pride Corp
(PPC - Get Report)
has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.02% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PPC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- PILGRIM'S PRIDE CORP has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PILGRIM'S PRIDE CORP turned its bottom line around by earning $0.71 versus -$2.32 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.71).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Food Products industry average. The net income increased by 39.3% when compared to the same quarter one year prior, rising from $39.17 million to $54.58 million.
- The revenue growth significantly trails the industry average of 42.5%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
Pilgrim's Pride Corporation engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products in the United States, Mexico, and Puerto Rico. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Pilgrims Pride has a market cap of $2.52 billion and is part of the consumer goods sector and food & beverage industry. Shares are up 34.4% year to date as of the close of trading on Friday.
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