In the latest trading session, Simply Good Foods (SMPL) closed at $35.95, marking a -0.88% move from the previous day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq lost 2.33%.
Heading into today, shares of the nutritional foods company had lost 1.47% over the past month, outpacing the Consumer Staples sector's loss of 5.39% and lagging the S&P 500's gain of 1.03% in that time.
Investors will be hoping for strength from Simply Good Foods as it approaches its next earnings release. In that report, analysts expect Simply Good Foods to post earnings of $0.42 per share. This would mark a year-over-year decline of 4.55%. Meanwhile, our latest consensus estimate is calling for revenue of $321.55 million, up 1.59% from the prior-year quarter.
SMPL's full-year Zacks Consensus Estimates are calling for earnings of $1.61 per share and revenue of $1.24 billion. These results would represent year-over-year changes of +1.26% and +6.09%, respectively.
Investors might also notice recent changes to analyst estimates for Simply Good Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Simply Good Foods currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Simply Good Foods is holding a Forward P/E ratio of 22.53. Its industry sports an average Forward P/E of 23.29, so we one might conclude that Simply Good Foods is trading at a discount comparatively.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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