Pilgrim’s Pride Corporation (NASDAQ:PPC) is one of the best undervalued defensive stocks for 2026. On March 13, BTG Pactual initiated coverage of Pilgrim’s Pride Corporation (NASDAQ:PPC) with a Neutral rating and set a $40 price target. In its fiscal Q4 and full year 2025 financial results, the company reported net sales of $18.5 billion for the year, with a consolidated GAAP operating income margin of 8.7%. GAAP net income came up to $1.1 billion, with a GAAP EPS of $4.54, adjusted net income of $1.2 bill ...

Pilgrim's Pride (PPC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this poultry producer have returned -16.5% over the past month versus the Zacks S&P 500 composite's -3.6% change. The Zacks Food - Meat Products industry, to which Pilgrim's Pride belongs, has lost 7.2% over this period. Now the key question is: Where could the stock be headed in the near term?Althou ...

Core Viewpoint - Shares in Pilgrim's Pride (PPC), a chicken and pork producer, have significantly underperformed compared to the broader market and its peers in the staples sector, currently trading at the bottom end of its 52-week range [1] Group 1: Company Performance - Pilgrim's Pride shares are noted to be trading at the bottom end of their 52-week range, indicating a potential undervaluation [1] - The company's performance has lagged behind both the market and its peers in the staples sector, suggesting challenges in competitiveness or market perception [1]

Company Performance - Pilgrim's Pride (PPC) closed at $37.38, reflecting a -3.26% change from the previous day, underperforming the S&P 500's daily loss of 0.08% [1] - Over the past month, shares of Pilgrim's Pride have decreased by 9.68%, compared to a loss of 3.4% in the Consumer Staples sector and a loss of 2.16% in the S&P 500 [1] Financial Expectations - Analysts expect Pilgrim's Pride to report earnings of $0.76 per share, indicating a year-over-year decline of 41.98% [2] - The consensus estimate for revenue is projected at $4.5 billion, which represents a 0.83% increase from the prior-year quarter [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $4.3 per share and revenue at $18.5 billion, reflecting changes of -16.83% and +0.01% respectively from the prior year [3] - Recent adjustments to analyst estimates for Pilgrim's Pride indicate the dynamic nature of near-term business trends, with positive revisions suggesting optimism about the business outlook [3] Valuation Metrics - Pilgrim's Pride has a Forward P/E ratio of 8.99, which is lower than the industry's Forward P/E of 12.61, indicating a valuation discount [6] - The Food - Meat Products industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 180, placing it in the bottom 27% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a history of outperforming, with 1 stocks averaging an annual gain of +25% since 1988 [5] - Currently, Pilgrim's Pride holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate having decreased by 4.66% in the past month [5]

Core Viewpoint - Pilgrim's Pride Corporation (NASDAQ:PPC) is identified as one of the 13 Deep Value Stocks to buy, with a recent target price increase by BMO Capital to $42, reflecting a 5.0% rise from the previous target of $40, following strong Q4 2025 earnings results [1][6]. Financial Performance - The company reported an adjusted EBITDA of $415 million for Q4 2025, surpassing the street consensus estimate of $388 million, primarily driven by strong performance in US operations [1][2]. - The fresh portfolio segment experienced solid volume growth due to sustained demand from consumers and key customers, including quick-service restaurants and foodservice [2]. - The prepared foods segment saw increased market share penetration by Just Bare, contributing to rapid volume growth [2]. Regional Performance - US operations were the main contributor to the EBITDA beat, while European operations also showed positive results, with brands like Fridge Raiders and Rollover achieving volume growth that outpaced the category average [2]. - In contrast, Mexico faced challenges due to increased meat imports leading to lower live commodity prices, negatively impacting PPC's live commodity segment [3]. Company Overview - Pilgrim's Pride Corporation is engaged in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken and pork products across the US, Europe, and Mexico, with its headquarters located in Greeley, Colorado [4].

Core Insights - Pilgrim's Pride Corporation's Just Bare chicken brand has achieved over $1 billion in annual retail sales in 2025, marking a significant growth from a niche product to a leading player in the chicken market [1][9] Growth and Market Position - Just Bare has experienced a remarkable 45% annual growth rate, increasing its market share from 1% to 13% within three years, driven by strong consumer demand for convenient, clean-label protein options [2][9] - The brand leads the fully cooked chicken category in sales pace, supported by expanding retail distribution across mass, club, and grocery channels [2] Product Portfolio and Consumer Trends - The frozen fully cooked portfolio of Just Bare generates over $750 million in annual sales, with the Oven Roasted platform appealing to consumers seeking quick preparation and minimal ingredients [3] - The brand's focus on simplicity, transparency, and antibiotic-free chicken aligns with evolving consumer preferences for higher-quality convenience foods [3] Capacity Expansion and Strategic Initiatives - To meet rising demand, Pilgrim's Pride is constructing a new prepared chicken facility in Walker County, GA, aimed at increasing production capacity for Just Bare products [4] - This investment reflects the company's confidence in sustained volume growth and highlights the importance of the brand in scaling value-added prepared foods [4] Broader Strategic Goals - Pilgrim's Pride aims to reduce exposure to commodity price fluctuations by expanding its branded, value-added offerings, investing in prepared foods capacity, and strengthening key customer partnerships [5] - The company seeks to diversify revenue streams and build a more resilient earnings profile while addressing the growing demand for convenient protein solutions [5] Valuation Metrics - Pilgrim's Pride currently trades at a forward 12-month P/E ratio of 9.66, which is below the industry average of 13.35 and the sector average of 18.03, indicating a modest discount relative to peers [10]

Core Insights - Just Bare®, a chicken brand under Pilgrim's, has achieved over $1 billion in annual retail sales in 2025, marking a 45% annual growth rate and establishing itself as a leader in the frozen and fresh chicken market [1][2]. Company Performance - Just Bare has grown its market share from 1% to 13% in three years, becoming the 1 brand in sales pace within the fully cooked chicken category [2]. - The brand's frozen fully cooked portfolio generates over $750 million in annual sales, driven by strong distribution growth across mass, club, and grocery stores [2]. Strategic Developments - Pilgrim's CEO Fabio Sandri highlighted that the milestone reflects the company's strategic investments in innovation and operational excellence [2]. - A new prepared chicken facility is being constructed in Walker County, Georgia, to meet the rising demand for high-quality, convenient protein solutions [3]. Brand Positioning - Just Bare emphasizes premium quality with all-natural chicken raised without antibiotics, additives, or preservatives, appealing to consumers seeking trustworthy meal options [5]. - The brand's Oven Roasted platform has gained popularity due to its clean-label ingredients and quick preparation time of 1.5 minutes [2]. Industry Context - Just Bare's growth aligns with JBS's long-term strategy to enhance its value-added and prepared foods capabilities globally [3]. - JBS presented an overview of Just Bare's growth and innovation strategy during its 2026 CAGNY presentation, showcasing the brand's role in strengthening the prepared foods business across the JBS portfolio [4].

Core Insights - Just Bare, a chicken brand under Pilgrim's, has achieved over $1 billion in annual retail sales in 2025, marking a 45% annual growth rate and establishing itself as a leader in the frozen and fresh chicken market [1][2]. Group 1: Company Performance - Just Bare has grown its market share from 1% to 13% in three years, becoming the 1 brand in sales pace within the fully cooked chicken category [2]. - The brand's frozen fully cooked portfolio generates over $750 million in annual sales, driven by double-digit distribution growth across various retail channels [2][3]. - The success of Just Bare is attributed to strategic investments in innovation and operational excellence, reflecting the commitment of Pilgrim's to build a high-value prepared foods portfolio [2][3]. Group 2: Strategic Developments - A new prepared chicken facility is being constructed in Walker County, Georgia, to meet the rising demand for high-quality, convenient protein solutions [3]. - JBS, the majority shareholder of Pilgrim's, emphasizes the importance of scale and innovation in driving the growth of value-added and prepared foods globally [3][4]. Group 3: Brand Positioning - Just Bare focuses on providing premium fresh and frozen chicken made from all-natural ingredients, with a commitment to simplicity, quality, and transparency [5]. - The brand's Oven Roasted platform has gained popularity due to its clean-label ingredients and quick preparation time, appealing to consumers seeking convenient meal options [2].

Core Insights - The company reported adjusted EBITDA of BRL 450 million with a margin of 9.2% for Q4, indicating strong operational strategies amidst changing market conditions [1] - For fiscal year 2025, net revenues reached $18.5 billion, with adjusted EBITDA rising to $2.3 billion and a margin of 12.3%, driven by strong demand in the U.S. and operational efficiencies [3] - The company continues to diversify its portfolio, with significant growth in fresh and prepared foods, and is making strategic investments to enhance operational efficiency and capacity [2][20] Financial Performance - Q4 adjusted EBITDA was BRL 450 million, with a margin of 9.2%, while for the full year, adjusted EBITDA was $2.27 billion, reflecting a 2.5% increase from the previous year [26][27] - The U.S. business achieved net revenues of $11 billion in fiscal 2025, up from $10.6 billion in 2024, with an adjusted EBITDA margin of 14.8% [27] - Europe’s adjusted EBITDA improved by 11.4% to $453.1 million in 2025, driven by poultry sales growth and operational efficiencies [28] Market Dynamics - The U.S. fresh operations saw increased market share through a focus on quality and innovation, while prepared foods continued to drive growth across retail and foodservice [1][3] - Consumer demand for chicken remains strong due to its affordability compared to other proteins, with chicken experiencing volume growth across all cuts [6][8] - In Mexico, sales grew despite challenges from increased imports of animal-based proteins, with the company initiating investments to drive profitable growth [2][20] Operational Strategies - The company is enhancing its manufacturing efficiency and optimizing its product mix in Europe, leading to improved margins and adjusted EBITDA [2] - Investments in fresh and prepared foods are aimed at driving growth while reducing business volatility, with a focus on key customer partnerships [2][20] - The company is converting a Big Bird plant to a case-ready facility to support key customer growth and is expanding its prepared foods capacity in Georgia [22][39] Consumer Trends - Consumer sentiment remains low due to economic uncertainty, but chicken's affordability is driving demand, particularly in retail [6][8] - The company is seeing increased promotional activity in foodservice to attract consumers, especially in QSRs, despite overall traffic challenges [8][66] - The Just BARE brand has shown significant growth, with sales more than doubling compared to last year, indicating strong consumer acceptance [20][67] Supply Chain and Production - The USDA projects a 1.9% year-over-year decline in the layer flock, which may impact supply growth in 2026 [5] - Corn prices increased slightly in Q4 but moderated in January, with expectations of higher ending stocks for corn and soybeans [10][30] - The company is managing production and operational efficiencies to mitigate commodity pricing volatility and enhance margins [13][23]

Core Insights - Pilgrim's Pride Corporation (PPC) reported fourth-quarter 2025 results that fell short of the Zacks Consensus Estimate for both revenue and earnings, despite a year-over-year increase in net sales [1][8] Financial Performance - Adjusted earnings were 64 cents per share, missing the Zacks Consensus Estimate of 78 cents, and decreased from $1.35 per share in the same quarter last year [2] - On a GAAP basis, earnings were 37 cents per share, down from 99 cents in the prior-year period [2] - Net sales reached $4,517.8 million, a 3.3% increase from the previous year, but missed the consensus mark of $4,600 million [3] - Cost of sales increased to $4,089.2 million from $3,818.8 million year-over-year, leading to a gross profit decline to $428.6 million from $553.3 million [3] - Adjusted EBITDA was $415.1 million, down from $525.7 million in the prior year, with an adjusted EBITDA margin of 9.2%, down from 12% [4] Segment Analysis - U.S. operations generated net sales of $2,598.5 million, slightly down from $2,613.2 million year-over-year, with strong demand in the Fresh portfolio and an 18% increase in U.S. Prepared Foods sales [5] - European operations saw net sales increase to $1,383.6 million from $1,259.2 million, supported by an improved product mix and branded diversification [6] - Mexico operations reported net sales of $535.7 million, up from $499.6 million, although profitability faced pressure from increased imports and weaker commodity fundamentals [7] Financial Health - The company ended the quarter with cash and cash equivalents of $640.2 million, long-term debt of $3,093.1 million, and total shareholders' equity of $3,693.7 million [8]