Based in Springdale, Arkansas, Tyson Foods, Inc. (TSN) operates as a food company, producing, distributing, and marketing a range of products, including prepared foods. Valued at a market cap of $22.1 billion, the company sells its products through its sales staff to grocery retailers and wholesalers, meat distributors, military commissaries, industrial food processing companies, chain restaurants, and international export companies.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Tyson Foods fit right into that category. The company distinguishes itself as the world's second-largest processor and marketer in its sector and is renowned as a leader in protein production. It owns various brands, including Tyson, Jimmy Dean, and Hillshire Farm, among others, and is focused on innovation, with 19 test kitchens.
Shares of TSN are trading 7.3% below their 52-week high of $66.88, recorded on Sep. 9. The farm products manufacturer has gained 12.4% over the past three months, surpassing The Consumer Staples Select Sector SPDR Fund’s (XLP) 7.5% return over the same time frame.
However, in the longer term, TSN stock is up 15.3% on a YTD basis, lagging behind XLP’s 16.1% gains. Moreover, shares of TSN have gained nearly 15% over the past 52 weeks, underperforming XLP’s 16.9% returns over the same time frame.
TSN has been trading above its 200-day moving average since December last year, and has remained above its 50-day moving average since mid-July, indicating a bullish trend.
On Aug. 5, shares of TSN rose more than 2% after the company reported stronger-than-expected Q3 adjusted EPS of $0.87 and revenue of $13.4 billion. The positive results were driven by a rebound in meat sales and a significant reduction in feed costs for poultry, following a decline in grain prices. The company expects full-year adjusted operating income in the range of $1.6 billion to $1.8 billion, with sales being relatively flat in fiscal 2024 as compared to fiscal 2023.
However, TSN has significantly lagged behind its rival, Pilgrim's Pride Corporation (PPC), which gained 71.6% over the past 52 weeks and 51.4% on a YTD basis.
Despite TSN's underperformance over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the eight analysts covering the stock, and the mean price target of $62.67 suggests a premium of just 1.4% to its current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
