Pilgrim's Pride stock saw a positive improvement to its Relative Strength (RS) Rating on Thursday, with an increase from 70 to 75. The poultry and pork product producer reported third-quarter earnings of 58 cents per share, beating analysts' consensus estimate of 51 cents but that's down 48% from $1.09 per share for the same period a year ago. The company cited profit decline due to persistent inflation and macroeconomic conditions.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Over 100 years of market history shows that the top-performing stocks typically have an 80 or better RS Rating in the early stages of their moves. See if Pilgrim's Pride stock can continue to show renewed price strength and hit that benchmark.
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Is Pilgrim's Pride Stock A Buy?
Pilgrim's Pride stock has been trading in a narrow range along its 50- and 200-day moving average and is not currently near a potential buy zone. Avoid adding stocks during a market correction, but keep this meat producer on your watch list. See if the stock goes on to form a chart pattern that could kick off a new price move when the market turns up.
Although earnings and sales growth came in at -47% and -2%, respectively, in the latest report, that means earnings have improved for the last two reports and sales have increased for one.
Pilgrim's Pride stock holds the No. 3 rank among its peers in the Food-Meat Products industry group. Pilgrim's Pride and Cal-Maine Foods are also among the group's highest-rated stocks.
