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].

Group 1: Investment Opportunities - Pilgrims Pride Corp. is the second-largest chicken producer in the U.S. and has a price-sales ratio of 0.5, with its stock advancing 37% this year [3][14] - Wabash National Corp. has shown strong profitability with a return on stockholders' equity of 39% over the past four quarters, indicating robust financial performance [4] - Bunge Global SA operates in agribusiness and food, with a price-sales ratio of 0.30 and a profit margin of approximately 4.70% before tax [5][16] Group 2: Market Trends - The demand for personal computers has decreased significantly, with shipments down nearly 15% year-over-year, totaling about 242 million PCs [7] - Consumers are shifting towards cheaper food options, potentially increasing the demand for chicken over beef in the coming year due to rising prices for food and gasoline [13] Group 3: Company Performance - Reinsurance Group of America Inc. has maintained profitability for 30 consecutive years, with a stock price increase of about 30% this year and a price-sales ratio of 0.70 [22] - PC Connection Inc. experienced a 10% decline in sales last year but managed to achieve a 1% gain in profits, indicating resilience in a challenging market [23]

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? 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 ...

Core Points - Pilgrim's Pride Corporation will release its second quarter 2024 financial results after the U.S. market closes on July 31, 2024 [1] - A conference call and webcast to review the results will take place on August 1, 2024, at 7 a.m. MT (9 a.m. ET) [1] - The company employs approximately 61,200 people and operates protein processing plants and prepared foods facilities in 14 states, Puerto Rico, Mexico, the U.K., the Republic of Ireland, and continental Europe [5] Registration and Access - Investors and analysts can pre-register for the webcast to receive a unique PIN for immediate access [2] - Participants can also register on the day of the event by dialing specific numbers for U.S. and international access [3] - The webcast will be available for replay on the company's website two hours after the call concludes and will remain available until November 1, 2024 [4]

Pilgrim's Pride (PPC) closed at $38.29 in the latest trading session, marking a +0.74% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.09%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.3%. Investors should also note any recent changes to analyst estimates for Pilgrim's Pride. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' pos ...