Why Is Pilgrim's Pride (PPC) Stock Soaring Today
What Happened:
Shares of chicken producer Pilgrim’s Pride (NASDAQ:PPC) jumped 8.1% in the pre-market session after the company reported fourth-quarter results that blew past analysts' gross margin, EBITDA, and EPS expectations. Its revenue also outperformed Wall Street's estimates. For the full year 2023, the company's Prepared Foods segment was the star of the show as its Just Bare and Pilgrim's brands grew 59% year on year. The company's sales through digital channels also doubled compared to 2022. These results are promising, given the volatility experienced in 2023, which led to a supply/demand imbalance and unpredictable consumer sentiments. Overall, this was an excellent quarter that should please shareholders.
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What is the market telling us:
Pilgrim's Pride's shares are not very volatile than the market average and over the last year have had only 1 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Pilgrim's Pride is up 7.7% since the beginning of the year. Investors who bought $1,000 worth of Pilgrim's Pride's shares 5 years ago would now be looking at an investment worth $1,547.
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