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Top Stock Picks for Week of December 13, 2021

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Tyson Foods Inc. (TSN - Free Report) is the biggest U.S. chicken company and produces, distributes and markets chicken, beef, pork as well as prepared foods.Shares of Tyson Foods have outperformed the industry in the past three months. The company has been benefiting from strength in the retail channel. This was witnessed in the third quarter of fiscal 2021, which marked the company’s 12th consecutive quarter of retail share gains in core business lines, and was fueled by robust brands. During the quarter, both sales and earnings increased year over year and surpassed the consensus mark. Tyson Foods’ foodservice business saw rebound as the restaurant industry started to reopen. Considering the continued strength in its Beef segment management raised its fiscal 2021 sales guidance. The company has been focusing on acquisitions to expand portfolio and boost sales volumes. Also, management remains focused on higher protein production to cater to the rising demand for protein-packed food.

Toll Brothers Inc. (TOL - Free Report) builds single-family detached and attached home communities; master planned luxury residential resort-style golf communities; and urban low, mid, and high-rise communities, principally on the land it develops and improves.Toll Brothers’ shares have outperformed the industry so far this year. The trend is likely to continue, given solid fourth-quarter fiscal 2021 results. The top and bottom lines topped the Zacks Consensus Estimate by 4.4% and 21.8% as well as increased 19.5% and 94.8% on a year-over-year basis, respectively. The company has been benefiting from the strategy of broadening the product lines, price points and geographies. Also, a favorable housing backdrop, lack of competition in the luxury new home market and buyout synergies are aiding the company. Backed by solid demand and the current housing benefits, it provided strong first-quarter and fiscal 2022 guidance. The company plans to drive shareholder value by returning cash to shareholders through regular share repurchases and dividend payments.


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