Fresh Del Monte price prediction as shares plunge after FQ3 miss

on Nov 3, 2021
  • Fresh Del Monte shares on Wednesday plummeted more than 10% after reporting FQ3 results.
  • The company announced its most recent quarterly results before markets opened, missing analyst estimates.
  • FDP shares trade at an attractive P/E ratio of 13.20 following Wednesday’s plunge.

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On Wednesday, Fresh Del Monte Produce Inc. (NYSE:FDP) shares fell more than 10% after announcing its most recent quarterly results. The company reported its FQ3 revenue and earnings before markets opened, missing the consensus for analyst expectations.

Fresh Del Monte posted FQ3 GAAP earnings per share of $0.03, missing the average for analyst estimates of $0.23. On the other hand, revenue for the quarter increased marginally by 1% from the same period a year ago to about $1 billion, $40 million below Street expectations.

Fresh Del Monte looks undervalued

From an investment perspective, Fresh Del Monte shares trade at compelling trailing 12-month P/E and forward P/E ratios of 13.20 and 12.58, respectively. Therefore, value investors could be looking to swoop despite Wednesday’s disappointing quarterly results.

On the other hand, analysts expect its earnings per share to grow at an average annual rate of about 24% over the next five years, recovering from this year’s projected decline of 24.90%.

As a result, long-term growth investors could find it as an attractive option.

The stock has gained nearly 24% this year and more than 36% over the last 12 months.

Source – TradingView

Technically, Fresh Del Monte shares seem to have recently completed a downward breakout from an ascending channel formation in the intraday chart. As a result, the stock has plummeted closer to the oversold conditions of the 14-day RSI.

Therefore, investors could target potential rebounds at about $31.99, or higher at $34.05. On the other hand, if the pullback continues deep into oversold conditions, the stock could find support at $28.21, or lower at $26.11.

The pullback could be an opportunity to buy

In summary, although Fresh Del Monte’s recent results failed to meet expectations, its long-term outlook still looks exciting for growth investors.

Therefore, with shares plunging closer to oversold conditions whilst trading at compelling valuation multiples, Wednesday’s pullback could be a perfect entry opportunity for investors willing to ride out the intermediate storm.


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