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BRF (BRFS) Increases Despite Market Slip: Here's What You Need to Know

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In the latest trading session, BRF (BRFS - Free Report) closed at $4.17, marking a +1.96% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.05%.

Coming into today, shares of the chicken, beef and pork producer had lost 5.1% in the past month. In that same time, the Consumer Staples sector lost 3.62%, while the S&P 500 gained 5.94%.

The upcoming earnings release of BRF will be of great interest to investors. The company's upcoming EPS is projected at $0.13, signifying a 360% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.9 billion, reflecting a 2.56% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.47 per share and revenue of $11.1 billion, which would represent changes of +256.67% and +14.74%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for BRF. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 9.3% rise in the Zacks Consensus EPS estimate. BRF is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, BRF currently has a Forward P/E ratio of 8.7. This indicates a discount in contrast to its industry's Forward P/E of 17.55.

One should further note that BRFS currently holds a PEG ratio of 0.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.83 based on yesterday's closing prices.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 27% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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