Pilgrim's Pride Corporation PPC is set to release its first-quarter 2025 earnings on April 30 after the market closes.

Although the consensus mark for first-quarter earnings has moved down by a penny over the last seven days, the projection indicates a considerable increase of 63.6% from the year-ago quarter’s reported figure. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Pilgrim's Pride has a trailing four-quarter average earnings surprise of 25.7%. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 19.5%.

What the Zacks Model Predicts About PPC’s Q1 Earnings

As investors prepare for Pilgrim's Pride’s first-quarter announcement, the question looms regarding earnings beat or miss. Our proven model doesn’t conclusively predict an earnings beat for PPC this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pilgrim's Pride has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping Pilgrim's Pride’s Q1 Earnings?

Pilgrim’s Pride has been reaping the benefits of strategic investments aimed at driving long-term growth and operational excellence. The company has been allocating significant capital toward key expansion projects and operational efficiency initiatives, with plans to pursue additional opportunities in the near future.

These efforts are focused on optimizing the product mix, deepening partnerships with key customers to meet specific product demands and enhancing overall efficiency while supporting sustainability goals. With a disciplined approach to capital allocation and cash flow management, Pilgrim’s Pride remains committed to executing its growth strategy responsibly. These investments are expected to have positively impacted the company’s bottom line in the first quarter.

Pilgrim’s Pride has also been experiencing strong momentum in its foodservice segment. Higher volumes and increased revenues across both commercial and non-commercial channels highlight growing demand in the segment. Chicken remains a key ingredient in Quick-service restaurants’ menu expansion, driving volume gains for its Small Bird and Case Ready businesses. Apart from this, innovation remains a core pillar of Pilgrim’s Pride’s success.

PPC Surges Ahead, Leads the Pack

Pilgrim's Pride has witnessed an impressive surge in its stock price over the past three months. The stock has rallied 17.9%, outpacing the Zacks Food - Meat Products industry’s decline of 8.4%.

The company has also outpaced key competitors in the food sector: Tyson Foods, Inc. TSN, Hormel Foods Corporation HRL and Beyond Meat, Inc. BYND. Shares of Tyson Foods have gained 6.8%, while Hormel Foods and Beyond Meat’s shares have declined 2.1% and 37.3%, respectively.

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Does Pilgrim's Pride Present a Strong Case for Value Investing?

From a valuation perspective, Pilgrim's Pride shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 10.80, below the five-year median of 11.01, and the industry’s average of 13.31, the stock offers compelling value for investors seeking exposure to the sector. The stock currently has a Value Score of A, further validating its appeal.

This valuation gap becomes even more pronounced when compared to key competitors like Tyson Foods (P/E of 15.60) and Hormel Foods (HRL) (P/E of 18.19).

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Pilgrim's Pride Stock Analysis: Best Moves for Investors Now

Pilgrim’s Pride has firmly positioned itself as a compelling value play, outperforming both its industry and major competitors in recent months. Backed by strong operational performance and trading at a discount to historical and industry valuation benchmarks, the stock stands out for investors seeking quality exposure in the food sector. Existing shareholders may choose to hold their positions, while new investors could find the current valuation appealing for making fresh investments.

Final Thoughts on PPC’s Q1 Outcome

As Pilgrim’s Pride gears up to report its first-quarter earnings, expectations remain cautiously optimistic. The company’s strategic investments, strong foodservice momentum and product innovation are likely to support solid bottom-line results. PPC’s consistent earnings surprises, operational strength and attractive valuation make it a stock to watch closely this earnings season.

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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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