Analysts Back Food Producer Despite Lackluster Finances

FDP will release Q3 earnings on October 26

facebook twitter linkedin

Fresh Del Monte Produce Inc. (NYSE:FDP) is one of the world’s leading vertically integrated producers, marketers, and distributors of fruit and vegetables, as well as a producer and distributor of prepared food in Europe, Africa, and the Middle East. This afternoon, FDP was last seen up 0.4% at $33.97.

FDP is scheduled to release its quarterly earnings and financial results next week on Tuesday, October 26. Wall Street analysts currently expect that Fresh Del Monte will deliver earnings of $0.35 per share in the upcoming Q3 earnings report.

Fresh Del Monte stock has increased about 35% year-over-year and is up around 68% since bottoming at a 52-week low of $20.71 last November. Additionally, shares of FDP have grown 33% year-to-date and has shed about 7.5% since hitting its annual high of $36.57 in mid-May. Fresh Del Monte Produce also offers a forward dividend of $0.60 and a dividend yield of 1.77%.

From a fundamental perspective, Fresh Del Monte stock has a decent valuation, with FDP trading at a price-earning ratio of 14.89. However, the security's fundamentals are relatively weak.  

FDP's balance sheet doesn’t provide much security either, with the total cash balance at $19.6 million and the total debt at $666.4 million. Overall, even Fresh Del Monte stock’s valuation seems much less attractive when looking at FDP’s forward price-earnings of 17.92, which suggests an expected decrease in earnings.

Regardless, analysts are looking optimistic toward the security. In fact, heading into today, both of the covering brokerages sport a "buy" recommendation on Fresh Del Monte Stock.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners