PPC - Pilgrim's Pride: Soft Top-Line Growth Continues To Pressurise Earnings

2024-04-16 01:36:25 ET

Summary

• Pilgrim's Pride Corporation shares have risen over 75% since June 2023 and 37% since our most recent commentary in December 2023.
• The bearish divergence of Pilgrim's MACD indicator suggests limited potential for the stock to break through overhead resistance.
• Pilgrim's profitability and valuation trends do not support a sustained bullish run, with constrained profitability and muted top-line sales growth.

Intro

We wrote about Pilgrim's Pride Corporation ( PPC ) (Chicken & Pork Distributor) in December last year when we reiterated our 'Hold' rating in the packaged food outfit. Shares, however, have continued their ascent in recent months with the stock now up over 75% since their June lows of last year & 37%+ since our most recent commentary. We flagged this in December when we stated that Pilgrim's Pride still had upside potential as shares had not yet reached significant long-term overhead resistance as we see below....

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