With a market cap of $20.48 billion, Tyson Foods Inc. (TSN) is a major player in the food industry, offering a wide range of protein-based products. Based in Springdale, Arkansas, the company distributes its offerings through various channels, including grocery retailers, wholesalers, industrial food processors, and international export companies.
Shares of the meat processing company have underperformed the broader market over the past 52 weeks. TSN has gained 10.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 25.2%. In 2024, shares of TSN are up 6.7%, compared to the SPX's 10.4% gains on a YTD basis.
However, zooming in further, TSN has outpaced the Nasdaq Food & Beverage ETF's (FTXG) 9.7% loss over the past 52 weeks.
TSN’s underperformance can be majorly attributable to concerns over slowing demand, challenges in beef and pork operations, and the closing of four more chicken plants. Moreover, the stock dropped nearly 5.7% on May 6 after the company posted mixed Q2 earnings results and projected a weaker Q3 on concerns over persistent inflation and high commodity costs.
For the current fiscal year, ending in September, analysts expect TSN's EPS to grow by 91% to $2.56. The company's earnings surprise history is mixed. It beat the consensus forecast in three of the past four quarters while missing on one other occasion.
Among the nine analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on three “Strong Buy” ratings and six “Holds.”
This configuration is slightly more bullish than three months before, with two analysts suggesting a "Strong Buy."
On May 7, HSBC Holdings (HSBC) boosted Tyson Foods' price target to $51.
The mean price target of $61.60 represents a premium of just 7.4% to TSN's current levels. The Street-high price target of $72 indicates a potential upside of 25.5%.
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