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

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BRF (BRFS - Free Report) closed the most recent trading day at $4.29, moving +0.23% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.18%.

The the stock of chicken, beef and pork producer has fallen by 4.68% in the past month, lagging the Consumer Staples sector's loss of 1.82% and the S&P 500's gain of 2.76%.

Investors will be eagerly watching for the performance of BRF in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.13, reflecting a 360% increase from the same quarter last 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.47 per share and revenue of $11.1 billion, indicating changes of +256.67% and +14.74%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BRF. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, BRF boasts a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, BRF is currently exchanging hands at a Forward P/E ratio of 9.11. Its industry sports an average Forward P/E of 18.13, so one might conclude that BRF is trading at a discount comparatively.

It is also worth noting that BRFS currently has a PEG ratio of 0.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 2.82.

The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 42% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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