Simply Good Foods (SMPL) Gains As Market Dips: What You Should Know
Simply Good Foods (SMPL) closed at $37.42 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 3.35%.
Coming into today, shares of the nutritional foods company had gained 2.03% in the past month. In that same time, the Consumer Staples sector lost 2.43%, while the S&P 500 gained 1.61%.
Wall Street will be looking for positivity from Simply Good Foods as it approaches its next earnings report date. In that report, analysts expect Simply Good Foods to post earnings of $0.42 per share. This would mark a year-over-year decline of 4.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $321.55 million, up 1.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.61 per share and revenue of $1.24 billion, which would represent changes of +1.26% and +6.09%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Simply Good Foods. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 has moved 0.06% higher within the past month. Simply Good Foods currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Simply Good Foods has a Forward P/E ratio of 22.83 right now. Its industry sports an average Forward P/E of 23.19, 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 industry currently has a Zacks Industry Rank of 119, which puts it in the top 48% 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 SMPL in the coming trading sessions, be sure to utilize Zacks.com.
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The Simply Good Foods Company (SMPL) : Free Stock Analysis Report
