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B&G Foods (BGS) Gains But Lags Market: What You Should Know

Zacks Equity Research
·2 min read

B&G Foods (BGS) closed at $26.95 in the latest trading session, marking a +0.6% move from the prior day. This change lagged the S&P 500's 1.2% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 1.64%.

Heading into today, shares of the food producer had lost 3.53% over the past month, lagging the Consumer Staples sector's loss of 2.76% and the S&P 500's loss of 2.23% in that time.

BGS will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2020. On that day, BGS is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 18.52%. Meanwhile, our latest consensus estimate is calling for revenue of $453.53 million, up 11.62% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $1.93 billion, which would represent changes of +35.37% and +16.17%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BGS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BGS currently has a Zacks Rank of #3 (Hold).

Digging into valuation, BGS currently has a Forward P/E ratio of 12.09. This valuation marks a discount compared to its industry's average Forward P/E of 18.32.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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