BRF Brasil Foods S.A. (BRFS) is capitalizing on strong emerging market growth, recently hitting a new 52-week high after reporting impressive Q3 results. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock won’t leave you hungry for momentum.
Company Description
BRF Brasil Foods SA, through its subsidiaries, produces and sells poultry, pork, beef, dairy and processed food in Brazil and Internationally. The company has been in business for over 100 years and has a market cap of $26 billion.
BRFS has traded in the green for most of 2011, but shares got an extra boost in late October when the company reported strong Q3 results that came in ahead of expectations.
Third-Quarter Results
Revenue for the period was up 10.4% from last year. Earnings also came in strong at 24 cents, 9% ahead of the Zacks Consensus Estimate.
The company looked strong in a couple areas. Domestic sales were up 14%, with Meats leading the way at 18.5% International revenue was up 6%.
Estimates
We saw some movement in estimates off the good quarter, with the current year adding 2 cents to $1.27. The next-year estimate gained 20 cents, climbing to $1.41, a solid 11% growth projection.
With a PEG ratio of 1.45, BRFS trades at a premium to the benchmark of 1 for value.
2-Year Chart
On the chart, shares continue to trade near the recent all-time high. Look for support from the trend on any weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.
