Jbs NV hits a 20-day low amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 26 2024
0mins
Should l Buy JBS?
Source: SeekingAlpha
Jbs NV experienced a price decline of 3.01%, hitting a 20-day low during regular trading hours. This movement occurs amid broader market strength, with the Nasdaq-100 up 0.88% and the S&P 500 up 0.64%. The stock's drop suggests sector rotation as investors shift their focus, despite the overall market gains.
The decline in Jbs NV's stock price reflects a potential shift in investor sentiment, as the company faces challenges that may not align with the positive trends seen in the broader market. This situation indicates that while the market is performing well, certain sectors, including Jbs NV, are experiencing downward pressure, possibly due to specific company-related issues or sector dynamics.
Investors may want to monitor Jbs NV closely for any upcoming developments or changes in market conditions that could influence its performance. The current low could present a buying opportunity if the company can address its challenges effectively.
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Analyst Views on JBS
Wall Street analysts forecast JBS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JBS is 19.07 USD with a low forecast of 17.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 15.730
Low
17.00
Averages
19.07
High
22.00
Current: 15.730
Low
17.00
Averages
19.07
High
22.00
About JBS
JBS N.V. is Netherlands-based Company primarily engaged in the food and protein processing industry. The Company focuses on the production and global distribution of animal protein and food products to retail, foodservice, and industrial clients. The Company has in its offer poultry, pork, beef, lamb, fish and plant-based products. In addition, the Company operates in sectors such as leather, biodiesel, fertilizers, collagen, sausage casings, hygiene and beauty, metal packaging, transportation, waste management solutions. The Company is active worldwide in 17 countries and is listed on The New York Stock Exchange (NYSE).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Scale: JBS will invest $150 million to acquire an 80% stake in an Oman-based food company, involving the Oman Investment Authority, demonstrating the company's commitment to expanding in the Middle East market.
- Local Production Base: This acquisition will establish a local production base for JBS in Oman, ensuring fresh poultry supply from domestic breeders while beef and lamb processing will rely on livestock from Africa and the Middle East, enhancing supply chain stability.
- Strategic Positioning: JBS CEO Gilberto Tomazoni stated that Oman is viewed as a strategic entry point into the region, allowing the company to be closer to suppliers and end markets, with further investments planned to increase market share.
- Halal Food Expansion: This transaction is the latest move by JBS to expand its halal food operations, following its poultry processing business in Saudi Arabia, and the company plans to expand its facility in Jeddah, further solidifying its market position in the Middle East.
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- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
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- Significant Investment: The expansion will be backed by approximately $50 million in funding as part of an $85 million nationwide investment program since 2021, with expected annual production nearing 40,000 tons.
- Job Creation: The new expansion is projected to add around 500 direct jobs, bringing the local workforce close to 1,000, thereby further stimulating the Saudi economy.
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- Perception of Europe: Europe is often viewed as the "global sick man" amidst this rivalry, suggesting a decline in its influence and power.
- Implications for Global Politics: The dynamics between the U.S. and China may overshadow Europe's role in international affairs.
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- Investment Scale: JBS will invest $150 million to acquire an 80% stake in an Oman-based food company, involving the Oman Investment Authority, demonstrating the company's commitment to expanding in the Middle East market.
- Local Production Base: This acquisition will establish a local production base for JBS in Oman, ensuring fresh poultry supply from domestic breeders while beef and lamb processing will rely on livestock from Africa and the Middle East, enhancing supply chain stability.
- Strategic Positioning: JBS CEO Gilberto Tomazoni stated that Oman is viewed as a strategic entry point into the region, allowing the company to be closer to suppliers and end markets, with further investments planned to increase market share.
- Halal Food Expansion: This transaction is the latest move by JBS to expand its halal food operations, following its poultry processing business in Saudi Arabia, and the company plans to expand its facility in Jeddah, further solidifying its market position in the Middle East.
See More
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- UBS Initiates Coverage: UBS has started coverage on a specific stock with a "Buy" rating.
- Price Target Set: The price target for the stock has been set at $19.50.
See More
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- Price Range Analysis: The EWZ ETF's 52-week low is $23.05 per share, with a high of $38.875, while the last trade was at $37.75, indicating stability near the high point that may attract investor interest in price fluctuations.
- Technical Analysis Tool: Comparing the recent share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buy or sell opportunities.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, impacting the ETF's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity changes can significantly affect the performance of the underlying stocks held within the ETFs.
See More
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- Inventory Constraints: U.S. beef inventories have plummeted to their lowest levels in decades, causing beef prices to surge sharply, despite resilient consumer demand for steaks and burgers, highlighting a significant supply-demand imbalance in the market.
- Price Forecasts: Evercore ISI projects that hamburger prices will rise about 15% in the first half of 2026, while steak prices are expected to increase by 5% to 15% depending on the cut, which will impose ongoing cost pressures on consumers and the restaurant industry.
- Industry Impact: Texas Roadhouse anticipates facing nearly 150 basis points of food cost deleverage in 2026, as approximately 50% of its commodity basket consists of beef, with key steak cuts like sirloin, ribeye, and filet expected to experience mid- to high-single- to double-digit inflation.
- Market Outlook: Analysts suggest that while beef inflation may finally end by late 2026, the high beef prices in the short term will continue to impact the profitability of several restaurant companies, particularly those unable to fully pass on costs to consumers.
See More
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- Capacity Doubling Plan: JBS's new poultry processing facility in Jeddah aims to double output by the end of 2026, indicating strong local demand and Saudi Arabia's focus on food security.
- Significant Investment: The expansion will be backed by approximately $50 million in funding as part of an $85 million nationwide investment program since 2021, with expected annual production nearing 40,000 tons.
- Job Creation: The new expansion is projected to add around 500 direct jobs, bringing the local workforce close to 1,000, thereby further stimulating the Saudi economy.
- Strategic Alignment: JBS's expansion aligns with Saudi Arabia's Vision 2030, reinforcing its three-decade commercial relationship with the Saudi market while enhancing competitiveness in the Gulf region.
See More
New Trade Agreement Boosts European Stocks, But Its Impact Remains Limited.
- U.S. and China Rivalry: The ongoing competition between the U.S. and China for economic and geopolitical dominance is a significant global issue.
- Perception of Europe: Europe is often viewed as the "global sick man" amidst this rivalry, suggesting a decline in its influence and power.
- Implications for Global Politics: The dynamics between the U.S. and China may overshadow Europe's role in international affairs.
- Need for European Resilience: There is a growing need for Europe to strengthen its position and respond effectively to the challenges posed by the U.S.-China competition.
See More
