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B&G Foods (BGS) Gains As Market Dips: What You Should Know

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B&G Foods (BGS) closed at $38.08 in the latest trading session, marking a +1.52% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.93%. Meanwhile, the Dow lost 2.03%, and the Nasdaq, a tech-heavy index, lost 2%.

Coming into today, shares of the food producer had gained 45.83% in the past month. In that same time, the Consumer Staples sector lost 2.68%, while the S&P 500 gained 1.48%.

BGS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.44, up 57.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $525.63 million, up 11.8% from the year-ago period.

It is also important to note the recent changes to analyst estimates for BGS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BGS is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, BGS is holding a Forward P/E ratio of 17.03. For comparison, its industry has an average Forward P/E of 20.43, which means BGS is trading at a discount to the group.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 23% 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.

To follow BGS in the coming trading sessions, be sure to utilize Zacks.com.


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