Pilgrim's Pride Corporation PPC has delivered an impressive 47% surge in its stock price over the past year. This strong rally raises a crucial question: Should investors take profits now, or is there still room for further upside?

Pilgrim’s Pride continues to enhance its market position by focusing on operational efficiencies, strategic growth initiatives and product innovation. The company’s ability to adapt to evolving consumer demand has been a key driver, strengthening its competitive edge in the protein market. In the past year, PPC stock has outperformed the Zacks Food - Meat Products industry, which declined 11.2%. Meanwhile, the broader Consumer Staples sector and the S&P 500 posted gains of 1.3% and 10%, respectively.

PPC Price Performance vs. Industry, S&P 500 & Sector

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Pilgrim’s Pride has also outperformed its key competitors, such as Tyson Foods, Inc. TSN, Hormel Foods Corporation HRL and Beyond Meat, Inc. BYND. Over the past year, TSN posted gains of 6.8%, while HRL and BYND saw a decline of 14% and 59.2%, respectively.

Closing Friday’s trading session at $49.62, PPC stock is now 13.2% below its 52-week high of $57.16, reached on Feb. 14. This pullback from the recent peak may be due to recent geopolitical tensions and some profit booking at higher levels. Despite this recent volatility, Pilgrim’s Pride’s stock still manages to trade above its 200-day moving average, signaling a bullish trend.

PPC Trades Above 200-Day Moving Average

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Pilgrim’s Pride: Strong Fundamentals or a Risky Bet?

Pilgrim’s Pride continues to capitalize on the growing consumer demand for chicken across retail and foodservice sectors. PPC has expanded its foodservice distribution network, experiencing a surge in QSR volumes. The increasing demand for chicken as a staple ingredient in menu expansions has bolstered its Small Bird and Case Ready businesses, further solidifying foothold in the segment. 

PPC remains committed to innovation and product differentiation to meet changing consumer preferences. Its Prepared Foods segment has seen steady growth, driven by the success of the Just BARE brand, which gained 200 basis points in market share during the fourth quarter of 2024. The relaunch of the Pilgrim’s brand has broadened consumer reach and expanded distribution, reinforcing the company’s focus on premium, high-quality poultry offerings.

The company is investing heavily in product development, packaging innovations and automation to improve efficiency and drive expansion. PPC’s European brands, Fridge Raiders and Rollover, have outperformed category trends, benefiting from rising demand for high-quality, convenient meal solutions. With capital expenditures set between $450 million and $500 million for 2025, PPC is focused on expanding Prepared Foods production, enhancing protein conversion, and optimizing operational efficiencies to sustain profitability.

How Consensus Estimates Stack Up for PPC

Strong investor confidence is evident around PPC, as the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past 30 days, analysts have increased their estimates for the current fiscal year by 2.9% to $5.28. 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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Pilgrim’s Pride: An Attractive Value Opportunity

PPC is currently trading at a discount to its historical and industry benchmarks, thanks to the recent correction in the stock price. PPC’s forward 12-month price-to-earnings (P/E) multiple is 9.67X, below its median level of 9.98X in the past year and lower than the industry’s multiple of 12.72X. This valuation indicates that PPC stock may be undervalued relative to its peers, presenting a compelling investment opportunity for value-focused investors. PPC’s Value Score of A adds to the upside.

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How to Play PPC Stock?

Pilgrim’s Pride has demonstrated strong operational execution, market adaptability and strategic expansion, reinforcing its position in the protein industry. Despite recent volatility and a pullback from its 52-week high, the stock continues to exhibit positive momentum, supported by robust fundamentals and long-term growth initiatives. PPC’s focus on efficiency, innovation and demand-driven expansion suggests the potential for sustained performance. With a favorable valuation and positive earnings outlook, this Zacks Rank #1 (Strong Buy) stock presents an attractive opportunity for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Hormel Foods Corporation (HRL) : Free Stock Analysis Report

Tyson Foods, Inc. (TSN) : Free Stock Analysis Report

Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report

Beyond Meat, Inc. (BYND) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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