Back to top

Image: Bigstock

BRF (BRFS) Flat As Market Gains: What You Should Know

Read MoreHide Full Article

BRF (BRFS - Free Report) closed the most recent trading day at $4.15, making no change from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.47%. Meanwhile, the Dow experienced a rise of 0.79%, and the technology-dominated Nasdaq saw an increase of 0.28%.

The the stock of chicken, beef and pork producer has fallen by 9.78% in the past month, lagging the Consumer Staples sector's loss of 1.98% and the S&P 500's gain of 3.48%.

The investment community will be closely monitoring the performance of BRF in its forthcoming earnings report. On that day, BRF is projected to report earnings of $0.13 per share, which would represent year-over-year growth of 360%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.9 billion, up 2.56% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.47 per share and a revenue of $11.1 billion, signifying shifts of +256.67% and +14.74%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for BRF. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.3% higher. BRF is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, BRF is currently trading at a Forward P/E ratio of 8.83. This valuation marks a discount compared to its industry's average Forward P/E of 17.66.

Also, we should mention that BRFS has a PEG ratio of 0.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 2.88.

The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BRF S.A. (BRFS) - free report >>

Published in