Is Tyson Foods' stock about to succumb to inflation pressures like so many other stocks? Its stock has been outperforming the overall market. In fact, Tyson stock just got a key rating upgrade. It now sports an 81 Relative Strength Rating, making it a good watchlist candidate.
Over 100 years of market history shows that the best stocks tend to have an RS Rating over 80 in the early stages of their moves.
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Tyson Stock Near High But Not Sizzling Hot
Even so, Tyson's stock chart is a little frayed around the edges. Here's what the latest data show for the Springdale, Ariz-based poultry, beef and pork products company.
Earnings growth increased in the company's most recent report from 48% the prior quarter to a resounding 71% leap to $2.29 per share. Revenue grew a mild 16% to $13.1 billion last quarter. That came on the heels of sales gains of 25%, 12% and 24% the prior three periods. The company says on its website that it plans to report its fiscal third quarter earnings on the morning of Aug. 8.
Tyson stock was up 0.7% late Wednesday afternoon. It hit an all-time intraday high at 100.72 in early February then consolidated. It tried to break out at the end of April, rising to 99.54 before being turned away. Although it continues to put up sometimes dazzling earnings growth numbers, it's not currently near a potential buying area. See if the stock goes on to build a sound pattern that could kick off a fresh climb.
Other Key Ratings Shine
Among its other key ratings Tyson has a 91 EPS Rating, putting it in the top 9% of all companies for profit growth in recent quarters and years. It boasts a 96 Composite Rating, showing it's outperforming 96% of all companies in terms of fundamental and technical metrics. One yellow flag is its D- Accumulation/Distribution Rating. The D- rating means institutional investors such as ETFs and mutual funds are moderately selling more of its shares than buying. Look for that to improve to a C or better rating.
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Tyson stock earns the No. 5 rank among its peers in the Food-Meat Products industry group. Sanderson Farms and Cal-Maine Foods are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strengh Rating tracks technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
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