Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style S ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Pilgrim's Pride (PPC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Pilgrim's Pride currently has an average brokerage reco ...

Financial Data and Key Metrics Changes - For Q2 2024, the company reported net revenues of $4.6 billion, a 5.8% increase compared to the same quarter last year [5][23] - Adjusted EBITDA was $666 million, up 164% from Q2 2023, with an adjusted EBITDA margin of 14.4%, compared to 5.8% last year [5][23] - In the U.S., adjusted EBITDA for Q2 was $444.6 million, compared to $113.5 million a year ago, driven by recovery in the commodity chicken market and lower grain input costs [24] Business Line Data and Key Metrics Changes - The Case Ready business in the U.S. continued to grow through key customer partnerships and innovation, leading to increased margins [5][15] - The Big Bird business improved due to optimization of mix and reduced grain input costs, resulting in significant margin expansion [16] - In Europe, the branded business rose over 7% from last year, with improvements in chilled meals and fresh chicken driving profitability [18] Market Data and Key Metrics Changes - In Mexico, sales with key customers grew double digits, supported by balanced supply and demand fundamentals [7][20] - The domestic chicken demand maintained firm growth, with retail pricing for boneless, skinless breast declining, while ground beef prices increased [11][14] - The USDA indicated a 0.9% increase in ready-to-cook chicken production for the U.S. compared to Q2 2023, despite challenges in livestock headcounts [9][10] Company Strategy and Development Direction - The company aims to capture market upsides while minimizing downside risks through continuous investment in its business [5] - There is a focus on diversifying the portfolio through innovation and enhancing customer partnerships, particularly in the U.S. and Mexico [20][21] - The company is exploring growth opportunities through acquisitions, particularly in the chicken and prepared food segments [33][34] Management's Comments on Operating Environment and Future Outlook - Management noted that while grain prices have declined, risks remain due to global uncertainties and weather conditions [9] - The company anticipates continued strong demand for chicken, particularly in Mexico, despite potential volatility in the live bird market [36][37] - Management expressed confidence in the company's ability to navigate challenges and capitalize on growth opportunities in various markets [20][22] Other Important Information - The company recorded a $71 million charge related to a settlement in grower's litigation during the quarter [24] - The effective tax rate for the quarter was 23.6%, with expectations for a full-year tax rate of approximately 26% [27] - The company plans to increase its full-year CapEx estimate to $525 million to $575 million, focusing on growth opportunities and operational efficiencies [30] Q&A Session Summary Question: Growth opportunities and CapEx plans - Management highlighted strong demand for chicken and opportunities to support key customer growth, with a focus on investments in facilities and potential acquisitions [33][34] Question: Trends for Q3 and market reactions - Management noted that while profitability in Mexico is strong, the live bird market remains volatile, and they expect continued strong demand for chicken [36][37] Question: Historical context of current market conditions - Management compared current market conditions to past cycles, emphasizing the differentiated portfolio and stable margins despite commodity market fluctuations [42][44] Question: Changes in product mix and margin profile - Management indicated that the branded and value-added product segments are expected to grow, contributing to more stable margins [47][48] Question: Long-term aspirations in Mexico - The company aims to grow as a food company in Mexico, exploring both organic growth and acquisition opportunities [49][50] Question: Impact of disease pressure on poultry trade - Management acknowledged that disease pressures are affecting live operations and trade, but noted that trade negotiations have minimized disruptions [51][52] Question: Margin expansion drivers in the U.K. - Management discussed the integration of operations and innovation as key drivers for margin expansion in the U.K. market [53][55]

Pilgrim's Pride Corporation (PPC) reported impressive second-quarter 2024 results, with the top and bottom lines increasing from the year-ago quarter. Also, the company's earnings surpassed the Zacks Consensus Estimate. The company's portfolio diversification strategies, operational excellence, branded offerings and key customer partnerships have been driving growth. Q2 in Detail PPC reported adjusted earnings of $1.67 per share, surpassing the Zacks Consensus Estimate of $1.32. Also, the bottom line increa ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they be ...

Core Insights - Pilgrim's Pride Corporation reported strong financial results for Q2 2024, with net sales reaching $4.6 billion and a GAAP net income of $326.5 million, translating to a GAAP EPS of $1.37 [2][19]. Financial Performance - Net sales increased by 5.8% year-over-year, from $4.3 billion in Q2 2023 to $4.6 billion in Q2 2024 [3]. - GAAP operating income margin was 9.7%, with operating income rising to $440.8 million, a significant increase from $100.3 million in the same quarter last year [3][19]. - Adjusted EBITDA for the quarter was $655.9 million, representing a margin of 14.4%, compared to 5.8% in Q2 2023 [2][3]. Segment Performance - The U.S. segment showed strong growth, with adjusted EBITDA margins of 16.7%, driven by improved market conditions and operational excellence [2][4]. - In Europe, adjusted EBITDA grew over 40% year-over-year, supported by better customer mix and operational improvements [2][7]. - Mexico's performance improved due to balanced commodity supply and demand, with growth in both fresh and prepared offerings [2][9]. Strategic Initiatives - The company is focusing on diversifying its product offerings, with notable growth in its prepared foods segment, particularly the Just Bare® brand, which saw double-digit sales growth [2][5]. - Investments in operational excellence and new facilities, such as the protein conversion plant in South Georgia, are expected to support future growth [2][10][11]. Market Conditions - Enhanced commodity fundamentals and lower input costs contributed to improved performance in the U.S. market, particularly for Big Bird and Case Ready products [5][6]. - Consumer sentiment in Europe improved as wage growth outpaced inflation, allowing the company to optimize its customer mix and drive branded offerings [7][8].

Core Insights - Pilgrim's Pride Corporation reported strong financial results for Q2 2024, with net sales reaching $4.6 billion and a GAAP net income of $326.5 million, reflecting a significant year-over-year growth in profitability [2][4]. Financial Performance - Net sales increased by 5.8% year-over-year from $4.3 billion in Q2 2023 to $4.6 billion in Q2 2024 [3]. - GAAP operating income margin was 9.7%, with GAAP EPS rising to $1.37, a 448% increase compared to $0.25 in the same quarter last year [2][3]. - Adjusted EBITDA for the quarter was $655.9 million, representing a 163.7% increase from $248.7 million in Q2 2023, with an adjusted EBITDA margin of 14.4% [2][3]. Segment Performance - The U.S. segment showed strong performance, with adjusted EBITDA margins of 16.7%, driven by improved market conditions and operational excellence [2][3]. - In Europe, adjusted EBITDA grew over 40% year-over-year, supported by better customer mix and operational improvements [2][3]. - Mexico's performance improved due to balanced commodity supply and demand, with growth in both fresh and prepared offerings [2][3]. Strategic Initiatives - The company is focusing on diversifying its product offerings, with notable growth in its prepared foods segment and the launch of over 85 new products [2][3]. - Investments in a new protein conversion plant in South Georgia are on schedule, aimed at supporting future growth and enhancing operational capabilities [2][3][10]. Market Conditions - Enhanced commodity fundamentals and disciplined execution of strategies contributed to the improved performance in the U.S. market [5][6]. - Consumer sentiment in Europe improved as wage growth outpaced inflation, allowing the company to optimize its customer mix and drive branded offerings [7][8]. Liquidity and Financial Health - The company maintains a strong liquidity position with a net leverage ratio of 1.1x adjusted EBITDA, providing a solid foundation for executing growth strategies [2][3].

Pilgrim's Pride Corporation (PPC) has seen a significant rise in its stock price, increasing 42.3% year to date. This performance outpaces the 10.4% growth of the Food - Meat Products industry and the broader Zacks Consumer Staples sector's 3.7% rise. The company has been benefiting from strategic growth initiatives such as focusing on key customers, expanding capacity, strengthening brands, and reducing costs. Image Source: Zacks Investment Research PPC has seen strong performance in Mexico thanks to balan ...

Core Viewpoint - Pilgrim's Pride has demonstrated strong performance with consistent positive earnings surprises, reporting an EPS of $0.77 against a consensus estimate of $0.6 in its latest earnings report [1] Performance Metrics - The stock has increased by 9.7% over the past month and has reached a new 52-week high of $40.21, reflecting a 41% gain since the beginning of the year, outperforming the Zacks Consumer Staples sector and the Zacks Food - Meat Products industry [7] Valuation Analysis - Currently, Pilgrim's Pride trades at 9.2X current fiscal year EPS estimates, significantly below the peer industry average of 20.1X. On a trailing cash flow basis, it trades at 11.1X compared to the peer group's average of 8.3X. The stock has a PEG ratio of 0.25, indicating it is not among the top value stocks [5] - The company holds a Value Score of A, along with Growth and Momentum Scores of A, resulting in a combined VGM Score of A [9] Zacks Rank and Style Scores - Pilgrim's Pride has a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts, which positions it well for potential further gains [10] - The stock is recommended for investors with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating it has room for growth in the near term [6]

Core Viewpoint - Pilgrim's Pride (PPC) is currently considered undervalued based on various financial metrics, making it an attractive option for value investors [6][8]. Financial Metrics - PPC has a PEG ratio of 0.25, significantly lower than the industry average of 0.58, indicating strong earnings growth potential relative to its price [3]. - The company has a P/CF ratio of 9.77, compared to the industry's average of 13.98, suggesting it is undervalued based on cash flow strength [4]. - PPC's Forward P/E ratio stands at 8.99, well below the industry average of 15.45, highlighting its potential for value investment [6]. - The P/S ratio for PPC is 0.52, which is lower than the industry's average of 0.93, further supporting the notion of undervaluation [7]. Investment Strategy - Value investing focuses on identifying companies that are undervalued by the market, utilizing fundamental analysis and traditional valuation metrics [5]. - PPC's strong earnings outlook and favorable valuation metrics make it a compelling choice for value investors at this time [8].