Poultry company Pilgrim’s Pride (NYSE:PPC) is looking strong–and should stay that way even past Thanksgiving.
Click to EnlargePilgrim’s Pride is the fourth-largest U.S. meat producer by revenue, and has made a dramatic comeback over recent years since filing for Chapter 11 bankruptcy protection in December 2008. The company brought in a new CEO, Don Jackson, who streamlined and refocused on becoming a market-driven company. This resulted in Pilgrim’s Pride being able to repay all creditors in full.
If that’s not impressive enough, growth this quarter for the poultry industry overall is estimated at only 2.80%, while PPC’s growth is estimated at 19.10%.
Recommendation: Buy PPC March 7.5 call options at $0.30 or lower, when the stock price is around $6.30. After entry, take profits if the stock price hits $7.00 or the option price hits $0.60. Exit if the stock price closes below $6.00 or the option price falls to $0.20.
Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.