Does one great quarter make up for a few down quarters? The Street seems to think so. Pilgrim's Pride stock broke out Monday, shooting 8% higher in huge volume, and continued rising Tuesday. The rise came after the company pivoted to a 220% earnings gain on strong sales.
Reflecting the poultry giant's renewed strength, the Relative Strength Rating for Pilgrim's Pride stock jumped from 77 Monday to 86 Tuesday.
Pilgrim's Pride Stock Jumps Into Top-Tier Group
The upgraded 86 RS Rating means that Greeley, Colo.-based Pilgrim's Pride stock is in the top 14% of all stocks for price performance over the past year. The best-performing stocks often have an RS Rating over 80 as they begin their biggest climbs.
On Monday, Pilgrim's Pride reported that earnings rose 220% year over year to 59 cents per share on 10% higher revenue, at $4.53 billion.
It's a welcome improvement, but it would be a good idea to be cautious with buys. The terrific quarter came after the company reported a series of quarters with shrinking earnings. The prior three quarters its earnings fell 93%, 71% and then 47% until it reversed to the outsize gain Monday.
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Among its other key ratings Pilgrim's Pride stock has a strong 91 Composite Rating out of 99. It has a so-so 74 Earnings Per Share Rating after its weak EPS reports last year. It boasts an A- Accumulation/Distribution Rating, showing strong buying of its stock by insurance funds, mutual funds and other institutional investors.
Up Again On Tuesday
Pilgrim's Pride stock has climbed more than 5% past a 29.02 entry in a first-stage flat base, meaning it's now out of a proper buy zone. Look for the stock to create a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week moving average. Tuesday afternoon it traded up about 1.5%.
Pilgrim's Pride stock holds the No. 2 rank among its peers in the Food-Meat Products industry group, according to IBD Stock Checkup. Small-cap organic eggs and butter company Vital Farms and Cal-Maine Foods are also among the group's highest-rated stocks.
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