Pilgrims Pride Corp (PPC)

PPC’s Q1 was below our estimate largely due to weaker than expected U.S. pricing. In our view, that was largely timing and we believe earnings growth this year will be robust on the back of…

With the exception of beef packers (est losses in the $200-ish/head range), the protein complex has enjoyed robust margins. We estimate that the average BB broiler producer is generating profits approaching $0.30/lb, while small- and…

As we noted in our industry notes published earlier today, we are not utilizing the typical rating system, but instead, are using a forced rank process. This note shows current ranking based upon Friday’s close.

When we first began following Pilgrim’s Pride, it had been very poorly managed for some time and ill-timed feed hedges finally precipitated its tumble into bankruptcy. Since, much stronger management has greatly improved operations, from…