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Meat Production Seeing Lots of International Growth in a Dull Market

|Includes: BRF-Brasil Foods S.A. (BRFS), SAFM

Two meat production companies that have seen consistant and significant capital inflows have been Sanderson Farms Inc. (NASDAQ:SAFM) and BRF-Brasil Foods (NYSE:BRFS).  Both companies are plays on a growing international demand for meat.  Sanderson specializes in poultry, while Brasil Foods is a bit more diversified with poultry, pork, and beef.  Sanderson and Brasil Foods are both trading a large discounts comapred to their industry average.  SAFM has a projected forward P/E of 8.6 with a PEG ratio of just 0.7.  BRFS has a projected forward P/E of 18.2.  The slightly higher P/E is more than justified due to the company's substantial growth with a PEG ratio of just 0.3.  The current industry average P/E for Meat Product companies is 48.1. 

Below are the 3-Year Weekly charts of SAFM and BRFS.  Both charts looks very attractive, and both stocks are Buys are current levels.

Sanderson Farms (SAFM):


Brasil Foods (BRFS):




Disclosure: None Mentioned