The real reason why BRF S.A. (BRFS) sank -2.28% today

BRF S.A. (NYSE:BRFS) is among the top losers of the stock market today, sinking -2.28% or (-0.21 points) to $9.01 from its previous close of $9.22. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 2970368 contracts so far this session. BRFS shares had a relatively better volume day versus average trading capacity of 5.24 million shares, but with a 0.78 billion float and a 8.47% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for BRFS stock indicates that the average analyst price target is $8.29 per share. This means the stock has a potential decrease of -7.99% from where the BRFS share price has been trading recently which is between $9.07 and $9.275. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $4.54.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Deal Skepticism Unleashes World-Beating Meat Rally for BRF” and dated July 05, 2019.

During the recent trading session for BRF S.A. (NYSE:BRFS), the company witnessed their stock rise $0.43 over a week and surge $2.07 from the price 20 days ago. When compared to their established 52-week high of $9.37, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/11/19. The recent low of $4.71 stood for a -2.86% since 08/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.8 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for BRF S.A., the two-week RSI stands at 72.43. This figure suggests that BRFS stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current BRFS readings is similarly very revealing as it has a stochastic reading of 91.58% at this stage. This figure means that BRFS share price today is being oversold.

Technical chart claims that BRF S.A. (BRFS) would settle between $9.31/share to $9.39/share level. However, if the stock price goes below the $9.1 mark, then the market for BRF S.A. becomes much weaker. If that happens, the stock price might even plunge as low as $8.98 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.37. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at JP Morgan raised their recommendation on shares of BRFS from Neutral to Overweight in their opinion released on June 13. BofA/Merrill analysts bumped their rating on BRF S.A. (NYSE:BRFS) stock from Neutral to Buy in a separate flash note issued to investors on July 02. Analysts at BofA/Merrill lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to March 06.

BRFS equity has an average rating of 2.14, with the figure leaning towards a bullish end. 7 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 7 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 6 analysts rated BRF S.A. (NYSE:BRFS) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, BRFS stock price is currently trading at 38.58X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.14 while for the average stock in the same group, the multiple is 1.73.

BRF S.A. (BRFS)’s current-quarter revenues are projected to climb by nearly -6.53% to hit $2.13 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 1.44% from $8.83 billion to a noteworthy $8.96 billion. At the other end of the current quarter income statement, BRF S.A. is expected to see its adjusted earnings surge by roughly 92.59% to hit $-0.04 per share. For the fiscal year, BRFS’s earnings are projected to climb by roughly 96.3% to hit $-0.02 per share.