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Sanderson Farms Is Trading above Key Moving Averages

Sue Miller

How Lower Product Prices Impacted Sanderson Farms in Fiscal 4Q15

(Continued from Prior Part)

Moving averages

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.

Analysts’ estimates

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.

Continue to Next Part

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