Pilgrim’s Pride Corporation (NASDAQ:PPC) is one of the 13 Deep Value Stocks to Buy Right Now. On February 13, BMO Capital increased its target price on Pilgrim’s Pride by 5.0% to $42 (from $40), while keeping its Market Perform call on the stock. This price update came after the company released its Q4 2025 earnings on February 11, which showed adjusted EBITDA of $415 million, beating the street consensus estimate of $388 million. The beat was driven primarily by US operations. The fresh portfolio segme ...

Core Insights - Just Bare®, a chicken brand under Pilgrim's, has achieved over $1 billion in annual retail sales in 2025, marking a 45% annual growth rate and establishing itself as a leader in the frozen and fresh chicken market [1][2]. Company Performance - Just Bare has grown its market share from 1% to 13% in three years, becoming the 1 brand in sales pace within the fully cooked chicken category [2]. - The brand's frozen fully cooked portfolio generates over $750 million in annual sales, driven by strong distribution growth across mass, club, and grocery stores [2]. Strategic Developments - Pilgrim's CEO Fabio Sandri highlighted that the milestone reflects the company's strategic investments in innovation and operational excellence [2]. - A new prepared chicken facility is being constructed in Walker County, Georgia, to meet the rising demand for high-quality, convenient protein solutions [3]. Brand Positioning - Just Bare emphasizes premium quality with all-natural chicken raised without antibiotics, additives, or preservatives, appealing to consumers seeking trustworthy meal options [5]. - The brand's Oven Roasted platform has gained popularity due to its clean-label ingredients and quick preparation time of 1.5 minutes [2]. Industry Context - Just Bare's growth aligns with JBS's long-term strategy to enhance its value-added and prepared foods capabilities globally [3]. - JBS presented an overview of Just Bare's growth and innovation strategy during its 2026 CAGNY presentation, showcasing the brand's role in strengthening the prepared foods business across the JBS portfolio [4].

Core Insights - The company reported adjusted EBITDA of BRL 450 million with a margin of 9.2% for Q4, indicating strong operational strategies amidst changing market conditions [1] - For fiscal year 2025, net revenues reached $18.5 billion, with adjusted EBITDA rising to $2.3 billion and a margin of 12.3%, driven by strong demand in the U.S. and operational efficiencies [3] - The company continues to diversify its portfolio, with significant growth in fresh and prepared foods, and is making strategic investments to enhance operational efficiency and capacity [2][20] Financial Performance - Q4 adjusted EBITDA was BRL 450 million, with a margin of 9.2%, while for the full year, adjusted EBITDA was $2.27 billion, reflecting a 2.5% increase from the previous year [26][27] - The U.S. business achieved net revenues of $11 billion in fiscal 2025, up from $10.6 billion in 2024, with an adjusted EBITDA margin of 14.8% [27] - Europe’s adjusted EBITDA improved by 11.4% to $453.1 million in 2025, driven by poultry sales growth and operational efficiencies [28] Market Dynamics - The U.S. fresh operations saw increased market share through a focus on quality and innovation, while prepared foods continued to drive growth across retail and foodservice [1][3] - Consumer demand for chicken remains strong due to its affordability compared to other proteins, with chicken experiencing volume growth across all cuts [6][8] - In Mexico, sales grew despite challenges from increased imports of animal-based proteins, with the company initiating investments to drive profitable growth [2][20] Operational Strategies - The company is enhancing its manufacturing efficiency and optimizing its product mix in Europe, leading to improved margins and adjusted EBITDA [2] - Investments in fresh and prepared foods are aimed at driving growth while reducing business volatility, with a focus on key customer partnerships [2][20] - The company is converting a Big Bird plant to a case-ready facility to support key customer growth and is expanding its prepared foods capacity in Georgia [22][39] Consumer Trends - Consumer sentiment remains low due to economic uncertainty, but chicken's affordability is driving demand, particularly in retail [6][8] - The company is seeing increased promotional activity in foodservice to attract consumers, especially in QSRs, despite overall traffic challenges [8][66] - The Just BARE brand has shown significant growth, with sales more than doubling compared to last year, indicating strong consumer acceptance [20][67] Supply Chain and Production - The USDA projects a 1.9% year-over-year decline in the layer flock, which may impact supply growth in 2026 [5] - Corn prices increased slightly in Q4 but moderated in January, with expectations of higher ending stocks for corn and soybeans [10][30] - The company is managing production and operational efficiencies to mitigate commodity pricing volatility and enhance margins [13][23]

分组1 - New York Times Co. reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and showing an increase from $0.8 per share a year ago, representing an earnings surprise of +1.14% [1] - The company posted revenues of $802.31 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.53%, and an increase from year-ago revenues of $726.63 million [2] - New York Times has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has gained approximately 4% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3] - The current consensus EPS estimate for the coming quarter is $0.51 on revenues of $695.06 million, and for the current fiscal year, it is $2.69 on revenues of $3.01 billion [7] - The Publishing - Newspapers industry, to which New York Times belongs, is currently ranked in the top 2% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Core Viewpoint - Pilgrim's Pride Corporation (NASDAQ:PPC) is recognized as a strong investment opportunity, with analysts showing mixed ratings and price targets reflecting varying outlooks for the company and the agricultural market in 2026 [2][3]. Group 1: Analyst Ratings and Price Targets - Grupo Santander's analyst raised Pilgrim's Pride from Neutral to Outperform with a price objective of $56 [2]. - Barclays maintained an Equal Weight rating but reduced its price target from $49 to $45, indicating a cautious outlook on the agricultural markets for 2026 [3]. Group 2: Financial Performance - In Q3 2025, Pilgrim's Pride reported net sales of $4.8 billion and operating income of $492.6 million, achieving a margin of 10.4% [4]. - Demand for Pilgrim's Pride products remained high in both foodservice and retail sectors, with prepared foods experiencing a year-over-year surge of over 25% [4]. Group 3: Company Position and Strategy - Pilgrim's Pride is the second-largest poultry producer in the United States, highlighting its significant market presence [5]. - The company aims to invest $500 million in U.S. operations and plans for expansion with key customers, maintaining a net leverage of approximately 1.0x [4].

Core Insights - The broader equity markets experienced a mini recovery, ending a four-day losing streak, driven by cooling inflation and strong performances from key blue-chip stocks [1][2] - The November consumer price index report indicated an annual inflation increase of 2.7%, lower than the expected 3.1%, while core consumer price inflation was at 2.6%, compared to a forecast of 3% [1] Investment Opportunities - Investors are encouraged to focus on "cash cow" stocks with high return on equity (ROE) to maximize returns, as high ROE indicates effective reinvestment of cash [2][3] - TE Connectivity plc (TEL), ZTO Express (Cayman) Inc. (ZTO), Pilgrim's Pride Corporation (PPC), Assurant, Inc. (AIZ), and Host Hotels & Resorts, Inc. (HST) are highlighted as stocks with high ROE and favorable efficiency scores [2][7] Financial Metrics - ROE is defined as Net Income divided by Shareholders' Equity, serving as a key indicator of a company's profitability and financial health [3] - A higher ROE signifies better management efficiency in generating profits without new equity capital [4] Screening Parameters - Stocks were screened based on criteria including cash flow greater than $1 billion, ROE greater than the industry average, price/cash flow ratio lower than the industry average, return on assets (ROA) greater than the industry average, and a 5-year EPS historical growth greater than the industry average [5][6][7] - Zacks Rank of 1 (Strong Buy) or 2 (Buy) was also considered, indicating stocks likely to outperform the market [7] Company Profiles - **TE Connectivity**: A global technology company focused on connectivity and sensor solutions, with a long-term earnings growth expectation of 12.3% and a trailing four-quarter earnings surprise of 6.5% [8][9] - **ZTO Express**: A leading express delivery service in China, with a Zacks Rank of 1 and a long-term earnings growth expectation of 3.1% [10][11] - **Pilgrim's Pride**: Engaged in the production and distribution of chicken products, with a trailing four-quarter earnings surprise of 10.4% and a Zacks Rank of 2 [11][12] - **Assurant**: A provider of risk management solutions, with a trailing four-quarter earnings surprise of 22.7% and a Zacks Rank of 2 [12][13] - **Host Hotels**: A leading lodging REIT with a trailing four-quarter earnings surprise of 11% and a Zacks Rank of 2 [14][15]

Core Insights - United Natural Foods, Inc. (UNFI) presented an updated long-term value creation framework during its 2025 Investor Day, focusing on profitable growth, improved operational execution, and stronger free cash flow through fiscal 2028 [1] Financial Outlook - UNFI introduced a revised financial framework with targets through fiscal 2028, expecting revenues to grow at a low single-digit average annual growth, reaching approximately $33 billion by fiscal 2028 [5] - Adjusted EBITDA is projected to rise at a low double-digit annual pace, targeting around $800 million in fiscal 2028 [5] - Free cash flow is anticipated to average about $300 million annually from fiscal 2026 to fiscal 2028 [5] Operational Improvements - The company has strengthened its balance sheet and operational footprint, creating a clearer path to steady growth and stronger cash generation [2] - UNFI is advancing supply-chain modernization efforts with a focus on data-driven systems, network efficiency improvements, and Lean Daily Management practices [4] - Ongoing initiatives include expanding services for retailers and suppliers, enhancing digital capabilities, and modernizing the distribution network [3][4] Competitive Position - UNFI's priorities include strengthening its competitive position while generating the necessary cash to reinvest in its network and operating capabilities [6] - The company is pursuing productivity gains through tighter SG&A control and waste-reduction efforts [9] Stock Performance - UNFI shares have lost 20.6% in the past month, underperforming the broader Consumer Staples sector and the S&P 500 index [7]

Core Insights - Strong consumer demand for protein continues to support the Zacks Food – Meat Products industry, with a shift towards leaner cuts, premium offerings, and cleaner-label options [1][4] - The industry faces challenges from tight livestock supplies and rising costs in feed, labor, and transportation, impacting margins [2][6] - Companies like Tyson Foods, Pilgrim's Pride, and Beyond Meat are well-positioned through product innovation and adaptability [2] Industry Overview - The Zacks Food – Meat Products industry includes companies that manufacture, process, market, and sell various meat products, including chicken, pork, beef, and plant-based meats [3] - Products are offered to retail and foodservice customers, with a range of items such as frozen chicken, pork cuts, and prepared foods [3] Major Trends - Sustained consumer demand for protein and premiumization is evident, with consumers prioritizing quality and health, leading to a resilient demand for traditional meat products [4] - There is a growing interest in premium and specialty meat offerings, allowing producers to capture price premiums and differentiate their products [4] - Product innovation is expanding the appeal of meat products, with clean-label and convenience-focused items gaining traction among consumers [5] Supply Chain Challenges - The industry is facing structural cost pressures due to constrained livestock supplies, particularly in beef, leading to price increases that exceed general food inflation [6] - Drought conditions and rising input costs are tightening supply and driving prices to historically high levels, complicating margin expansion for producers [6] Industry Ranking and Performance - The Zacks Food – Meat Products industry ranks 99, placing it in the top 41% of over 250 Zacks industries, indicating solid near-term prospects [7][8] - The industry has underperformed the broader Zacks Consumer Staples sector and the S&P 500 over the past year, declining 40.5% compared to a 5.5% drop in the sector and a 15.2% rise in the S&P 500 [10] Current Valuation - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 12.01X, significantly lower than the S&P 500's 23.44X and the sector's 16.07X [13] Company Highlights - **Pilgrim's Pride**: Positioned to benefit from strong poultry consumption trends, with a focus on chicken and pork, and a Zacks Rank of 2 (Buy) [16] - **Beyond Meat**: A leading plant-based alternative company, facing challenges but supported by rising interest in healthier food choices, with a Zacks Rank of 2 [20] - **Tyson Foods**: A broad protein portfolio positions the company well, with a focus on operational excellence and a Zacks Rank of 3 (Hold) [24]

Market Overview - Broader equity markets experienced a four-day winning streak as the likelihood of a Federal Reserve rate cut increased to approximately 89%, up from 67% a month ago [1] - The surge in the 10-year Treasury yield raised skepticism, impacting the short-term market rally following the release of key economic data [1] Economic Indicators - The core personal consumption expenditures price index for September showed an annual increase of 2.8%, slightly below the expected 2.9% [2] - U.S. consumer sentiment improved in December, with the Consumer Sentiment Index rising to 53.3 from 51 in November [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks with high returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [2] - High ROE indicates effective reinvestment of cash at a high rate of return, helping to identify financially healthy companies [3][4] Screening Parameters - Stocks were shortlisted based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [5] - Additional metrics included price/cash flow lower than industry averages and return on assets (ROA) greater than industry averages [6] Stock Picks - Selected stocks with high ROE and strong cash flow include TE Connectivity (TEL), ZTO Express (ZTO), Pilgrim's Pride Corporation (PPC), Assurant, Inc. (AIZ), and Host Hotels & Resorts, Inc. (HST) [7] - These stocks also exhibit solid earnings surprises, strong growth outlooks, and favorable valuation metrics [7] Company Profiles - **TE Connectivity**: A global technology company focused on connectivity and sensor solutions across various industries, with a long-term earnings growth expectation of 12.3% and a trailing four-quarter earnings surprise of 6.5% [8][9] - **ZTO Express**: A leading express delivery service in China with a long-term earnings growth expectation of 1.7% and a Zacks Rank of 1 [10][11] - **Pilgrim's Pride**: Engaged in the production and distribution of chicken products, with a trailing four-quarter earnings surprise of 10.4% and a Zacks Rank of 2 [11][12] - **Assurant**: Provides risk management solutions in housing and lifestyle markets, with a trailing four-quarter earnings surprise of 22.7% and a Zacks Rank of 2 [12][13] - **Host Hotels**: A leading lodging REIT focused on luxury and upper-upscale hotels, with a trailing four-quarter earnings surprise of 11% and a Zacks Rank of 2 [14][15]

Core Viewpoint - President Trump has eliminated tariffs on certain Brazilian exports to address rising grocery prices, indicating progress in trade negotiations with Brazil [1][2]. Group 1: Tariff Changes - Trump modified the previously imposed 40% tariffs on Brazil, which were established under Executive Order 14323, allowing certain agricultural imports to enter the U.S. tariff-free [2]. - Key Brazilian imports such as beef and coffee will no longer be subject to tariffs, providing relief for U.S. consumers [3]. Group 2: Economic Context - The Trump administration faced pressure due to soaring prices of essential commodities, with coffee prices reaching a 50-year high and retail coffee prices increasing by 21% year-over-year in August, the largest annual jump since 1997 [5]. - Beef prices have also surged this year, exacerbated by a prolonged drought in the western U.S. [5]. Group 3: Legislative Actions - Senate Republicans, alongside Democrats, passed legislation to overturn Trump's tariffs on Brazil, labeling them as "bogus emergency declarations" aimed at controlling rising prices [6]. Group 4: Market Reactions - Stocks related to Brazilian imports, particularly in coffee and cattle, showed mixed trading results after the executive order was announced [7]. - Specific stock movements included Starbucks Corp. increasing by 0.25% and Keurig Dr Pepper Inc. decreasing by 0.18% in after-hours trading [8].