NEW YORK (TheStreet) -- Sanderson Farms (SAFM - Get Report) stock closed lower by 7.82% to $74.66 on heavy trading volume on Friday along with the overall market rout after the U.S. government confirmed cases of bird flu in a commercial turkey flock in Indiana. The disease can be spread to other farms by wild birds and can affect meat and egg prices.

Laurel, MS-based Sanderson Farms processes, markets and distributes fresh and frozen chicken as well as other prepared chicken products.

The U.S. Department of Agriculture's Animal and Plant Health Inspection Service confirmed the presence of the H7N8 avian influenza in the Dubois County of Indiana.

The report comes just seven months after an outbreak of a separate strain that cost the poultry industry about $3.3 billion, Bloomberg reports.

"The timing of the disease was a surprise because most in the industry did not think it would reappear for another two or three months," Futures International senior commodity analyst Terry Reilly told Bloomberg.

By the end of the trading day, 1.28 million shares of Sanderson Farms had exchanged hands, compared with its average daily volume of 434,686 shares.

Separately, TheStreet Ratings has a "buy" rating and a letter grade of B on Sanderson Farms because of the company's solid financial position, attractive valuation and notable return on equity, which offsets somewhat weak growth in earnings per share.

You can view the full analysis from the report here: SAFM

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

SAFM Chart SAFM data by YCharts