Tyson Foods, Inc. (TSN), valued at a market cap of $21.5 billion, is one of the world’s largest food processing and protein production companies. The company is a leading producer of chicken, beef, and pork, supplying fresh, frozen, and prepared foods to retailers, food service providers, and international markets.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TSN perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the farm products industry. With a diverse brand portfolio that includes Tyson, Jimmy Dean, Hillshire Farm, Ball Park, and Wright, the company maintains a strong foothold in the sector, catering to a wide range of consumer preferences.
Despite its notable strength, TSN slipped 9.7% from its 52-week high of $66.88, achieved on Sep. 9. Over the past three months, TSN stock has climbed 4.6%, outpacing the broader S&P 500 Index ($SPX), which declined 4.5% during the same period.
In the longer term, shares of TSN have plunged marginally over the past six months but climbed 4% over the past 52 weeks. In contrast, the $SPX has gained marginally and 10.2% over the past year, outpacing the stock.
However, TSN has been trading above its 50-day and 200-day moving averages since last month, enforcing an uptrend.
On Feb. 3, Tyson Foods' stock rose 2.2% after reporting its Q1 earnings report, with EPS of $1.14 per share, a 65.2% increase year over year, with revenue up 2.2% to $13.6 billion. The company benefited from rising chicken demand and its diversified protein portfolio, boosting investor confidence.
Looking ahead, Tyson Foods anticipates that the total company’s adjusted operating income will be between $1.9 billion and $2.3 billion for the fiscal year 2025. The company expects its annual sales to be flat to up 1% compared to last year.
In the competitive arena of packaged food, Pilgrim's Pride Corporation (PPC) has taken the lead over TSN, showing resilience with a 17.9% uptick over the past six months and 50% gains over the past 52 weeks.
Wall Street analysts are cautiously hopeful about TSN’s prospects. The stock has a consensus “Moderate” rating from the nine analysts covering it, and the mean price target of $65 suggests a potential upside of 7.7% from current price levels.
