Back to top

Analyst Blog

Shares of Tyson Foods Inc (TSN - Analyst Report) reached a new 52-week high of $25.92 on Jun 18 following its acquisition of Circle Foods. Shares of this meat processor closed at $25.88 on Jun 18, recording a healthy return of 30% on a year-to-date basis. The company’s long-term estimated EPS growth rate is 8.50%. Average volume of shares traded over the last three months came in at approximately 3,734K.

Acquisition of Circle Foods

On Jun 3, Tyson agreed to buy the assets of California-based Circle Foods LLC to strengthen its presence in Mexican cuisine. Mexican food is becoming increasingly popular in the U.S. processed food industry. Tyson acquired Circle Foods from a Montreal-based private equity firm Claridge Inc.

The acquisition will not only expand Tyson’s Mexican food offerings but will also add the popular Circle Foods brands to its portfolio. Circle Foods owns popular brands like Nuevo Grille and Tortillaland handheld Mexican products, Tortillaland uncooked tortillas and ROTILAND Indian flat breads. It also produces private brands for several customers.

The deal will also include Circle Foods’ state-of-the-art facility plant in San Diego, which is known for its strong food safety management system. The plant produces burritos, enchiladas, chimichangas, tacos, quesadillas and tamales, as well as tortillas and Indian flat breads.

Tyson’s focus on Mexican food is also evident from its strategic acquisition of the Mexican snacks and tortilla producer, Don Julio Foods of Clearfield, Utah in Apr 2013. We believe that Tyson’s international growth, mainly in China, Mexico and India is also encouraging.

Other Stocks to Consider

Tyson holds a Zacks Rank #3 (Hold). Other meat producers in the industry that are worth considering are Sanderson Farms, Inc (SAFM - Snapshot Report) and Pilgrim’s Pride Corp (PPC - Snapshot Report), both of which hold a Zacks Rank #1 (Strong Buy). Another company in the consumer staples sector that also holds a Zacks Rank #1 is Flower Foods Inc (FLO - Snapshot Report).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%