Simply Good Foods (SMPL) Dips More Than Broader Markets: What You Should Know
Simply Good Foods (SMPL) closed the most recent trading day at $36.74, moving -0.86% from the previous trading session. This change lagged the S&P 500's daily loss of 0.47%. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 5.08%.
Heading into today, shares of the nutritional foods company had gained 0.84% over the past month, outpacing the Consumer Staples sector's loss of 0.73% and lagging the S&P 500's gain of 5.36% in that time.
Investors will be hoping for strength from Simply Good Foods as it approaches its next earnings release, which is expected to be June 29, 2023. On that day, Simply Good Foods is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 4.55%. Our most recent consensus estimate is calling for quarterly revenue of $321.55 million, up 1.59% from the year-ago period.
SMPL's full-year Zacks Consensus Estimates are calling for earnings of $1.61 per share and revenue of $1.24 billion. These results would represent year-over-year changes of +1.26% and +6.09%, respectively.
It is also important to note the recent changes to analyst estimates for Simply Good Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Simply Good Foods is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Simply Good Foods's current valuation metrics, including its Forward P/E ratio of 23.02. Its industry sports an average Forward P/E of 23.37, so we one might conclude that Simply Good Foods is trading at a discount comparatively.
The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Simply Good Foods Company (SMPL) : Free Stock Analysis Report
