Impressive increase in share price
B&G Foods (BGS), a processed and packaged food company, has had an impressive increase in share price so far in 2016. As of June 24, 2016, BGS stock has rallied 38%. It closed at $46.66 that day, which was close to its 52-week high of $47.41.
The better-than-expected performance with a 71% increase in earnings in the first quarter of 2016 led to the stock’s strong performance. Management also raised its guidance for fiscal 2016.
The stock rose 23% after the company reported its impressive fiscal 1Q16 results with a 71% YoY (year-over-year) increase in earnings and a 63% increase in revenue. It had risen 0.4% on May 18 when Credit Suisse upped the stock’s target price.
The stock has been following a rising trend since then, closing at $46.66 on June 24. It’s trading 21% above its 100-day moving average, 12% above its 50-day moving average, and 4% above its 20-day moving average. As of June 24, BGS outperformed the Market represented by the S&P 500 Index by 36%.
Stock performance of its peers
Among its peers in the processed and packaged goods industry, B&G Foods has increased the most so far in 2016. JM Smucker (SJM) has risen 19%. General Mills (GIS) and Pinnacle Foods (PF) have risen 15% and 3%, respectively.
The share price of a broader comparative index, the PowerShares Dynamic Food & Beverage ETF (PBJ), has increased 3%. PBJ has invested 59% of its holdings in food and beverage companies. B&G forms 2.5% of the ETF.
What’s in this series?
In this series, we’ll be looking at analysts’ revised estimates for B&G Foods’ EPS (earnings per share). We’ll also see what analysts are recommending for the company and what their target price is over the next 12 months.
Let’s start by looking at B&G Foods’ EPS estimates for the next four quarters.