How Lower Product Prices Impacted Sanderson Farms in Fiscal 4Q15
On December 21, 2015, Sanderson Farms closed at $76.41. It was trading 8.7%, 7.3%, and 2.8% above its 100-day, 50-day, and 20-day moving averages. The stock rose 5% during the last month. The stock started following a rising trend due to positive expectations for chicken prices.
Sanderson Farms’ peers in the industry include Pilgrim’s Pride (PPC), Tyson Foods (TSN), and Hormel Foods (HRL). Pilgrim’s Pride closed at $21.92, which is 5.8% above its 100-day moving average, 8.4% above its 50-day moving average, and 1.9% above its 20-day moving average. It rose 12% during November. Tyson Foods closed at $53.17. This is 17.6% above its 100-day moving average, 11.4% above its 50-day moving average, and 2.8% above its 20-day moving average. It rose 12% last month.
Hormel closed at $79.66. It’s trading 20.4% above its 100-day moving average, 12.5% above its 50-day moving average, and 4.2% above its 20-day moving average. It rose 11% in the last month.
The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 3.1% in Tyson Foods and 3.1% in Hormel Foods, respectively. RHS is trading 4.1%, 2.2%, and 0.74% above its 100-day, 50-day, and 20-day moving averages, respectively. The stock fell 1% last month and closed at $114.79 on December 21. The Guggenheim S&P 500 Pure Value ETF (RPV) invests 1.6% of its holdings in Tyson Foods.
For the next 12-month period, analysts’ estimates indicate upsides of 2% for Sanderson Farms, 7.7% for Pilgrim’s Pride, and 5.4% for Tyson Foods from their current level on December 21. Meanwhile, Hormel Foods already beat estimates by 6% on December 21.
In the next part of the series, we’ll analyze how Sanderson Farms performed in its last reported quarter and discuss what led to its price performance.
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