Pilgrim's Pride Looks Undervalued: Is Now the Time to Buy PPC Stock?

Pilgrim's Pride Corporation PPC is currently trading at a discount compared to its industry benchmarks. PPC stock trades at a forward 12-month price-to-earnings (P/E) ratio of 10.5, lower than the industry’s average of 13.23. Adding to its appeal, PPC holds a Value Score of A, reflecting strong fundamentals and positioning it as an attractive opportunity for long-term, value-focused investors.PPC P/E Ratio (Forward 12 Months)Image Source: Zacks Investment ResearchWhen stacked against other major food players such as Tyson Foods, Inc. TSN, Hormel Foods Corporation HRL and General Mills, Inc. GIS, PPC’s valuation becomes even more compelling. Tyson Foods, Hormel Foods, and General Mills are all trading at higher forward P/E ratios of 15.36, 17.91, and 14.25, respectively.While some investors are still weighing PPC’s near-term upside, the stock’s recent momentum and solid fundamentals suggest it may be poised for continued gains.PPC’s stock has surged 17.6% over the past three months, outperforming the industry and the S&P 500 declines of 5.2% and 10.2%, respectively. PPC has even outperformed the broader Consumer Staples sector’s gain of 8.3%. Currently trading at $53.29, the stock remains 6.8% below its 52-week high of $57.16, reached on Feb. 14, 2025.PPC Price Performance vs. Industry, S&P 500 & SectorImage Source: Zacks Investment ResearchPPC's stock performance stands out among food stocks. Over the past three months, Tyson Foods and Hormel Foods gained 9.5% and 1.5%, respectively, while General Mills dropped 3%.Let us analyze the fundamentals of Pilgrim’s Pride to understand the key drivers behind its market position and financial resilience.Why PPC Is a Standout in the Food SpacePilgrim’s Pride is capitalizing on growing consumer demand for chicken across both retail and foodservice sectors. The company has expanded its foodservice distribution network, with volumes rising notably in the quick-service restaurant channel. This trend has directly supported the growth of its Small Bird and Case Ready businesses, reinforcing PPC’s strong position within the segment.At the core of this momentum is PPC’s ability to align its supply chain and production capabilities with evolving foodservice needs. By focusing on operational agility and efficient delivery of high-quality poultry products, the company has strengthened its presence in higher-margin channels and continues to capture market share as chicken becomes a staple in menu innovations.Pilgrim’s Pride’s strategic investments reinforce its long-term growth potential. The company is prioritizing product development, packaging innovation and automation initiatives designed to enhance efficiency and drive scalability. In Europe, its brands Fridge Raiders and Rollover are outperforming industry trends, benefiting from consumer demand for convenient, premium meal solutions.PPC plans to allocate $450-$500 million in capital expenditure for 2025. These investments will focus on expanding Prepared Foods production, improving protein conversion capabilities, and optimizing operational efficiency. Together, these efforts position Pilgrim’s Pride to maintain profitability and build on its leadership in the global protein space.Estimate Revisions Favoring PPC StockReflecting positive sentiment around Pilgrim’s Pride, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 60 days, the consensus estimate has risen 15 cents to $5.28 for the current fiscal year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Image Source: Zacks Investment ResearchHow to Play PPC Stock?Pilgrim’s Pride has delivered strong operational execution, strategic expansion and market adaptability, solidifying its position in the food industry. Despite a volatile macroeconomic environment, the stock maintains positive momentum, backed by sound fundamentals and long-term growth drivers.PPC’s commitment to efficiency, innovation and demand-led growth continues to support its financial performance. With a compelling valuation and rising earnings estimates, this Zacks Rank #2 (Buy) stock stands out as an attractive opportunity for value-focused investors seeking exposure to the food sector. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Mills, Inc. (GIS): Free Stock Analysis Report Hormel Foods Corporation (HRL): Free Stock Analysis Report Tyson Foods, Inc. (TSN): Free Stock Analysis Report Pilgrim's Pride Corporation (PPC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks