BRF (BRFS) Declines More Than Market: Some Information for Investors

In the latest close session, BRF (BRFS) was down 3.23% at $3.90. This move lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.22%.

Heading into today, shares of the chicken, beef and pork producer had gained 9.81% over the past month, outpacing the Consumer Staples sector's loss of 0.8% and the S&P 500's gain of 4.07%.

Market participants will be closely following the financial results of BRF in its upcoming release. On that day, BRF is projected to report earnings of $0.11 per share, which would represent no growth from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.39 per share and a revenue of $12.15 billion, indicating changes of +8.33% and +11.05%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for BRF. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, BRF possesses a Zacks Rank of #2 (Buy).

With respect to valuation, BRF is currently being traded at a Forward P/E ratio of 10.33. Its industry sports an average Forward P/E of 16.17, 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 0.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Food - Miscellaneous industry had an average PEG ratio of 1.63 as trading concluded yesterday.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 26% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

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This article originally published on Zacks Investment Research (zacks.com).

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