How Do Analysts See Pilgrim’s Pride Corporation (NASDAQ:PPC) Performing In The Years Ahead?

Pilgrim’s Pride Corporation’s (NASDAQ:PPC) announced its latest earnings update in December 2017, which suggested that the business benefited from a large tailwind, eventuating to a high double-digit earnings growth of 57.67%. Investors may find it useful to understand how market analysts view Pilgrim’s Pride’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for Pilgrim’s Pride

Analysts’ expectations for this coming year seems positive, with earnings rising by a robust 14.00%. This growth seems to continue into the following year with rates reaching double digit 16.70% compared to today’s earnings and reduces to US$795.04M by 2021.

NasdaqGS:PPC Future Profit Apr 4th 18
NasdaqGS:PPC Future Profit Apr 4th 18

While it is informative understanding the growth rate each year relative to today’s level, it may be more beneficial to estimate the rate at which the earnings are rising or falling on average every year. The pro of this approach is that we can get a bigger picture of the direction of Pilgrim’s Pride’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 5.33%. This means, we can assume Pilgrim’s Pride will grow its earnings by 5.33% every year for the next few years.

Next Steps:

For Pilgrim’s Pride, I’ve put together three relevant factors you should further examine:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is PPC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PPC is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PPC? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!