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