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Is Tyson Foods (TSN) a Buy Ahead of Q3 Earnings Announcement?
Meat processing company Tyson Foods (TSN - Free Report) is set to report third-quarter earnings results on Monday before the opening bell. A member of the S&P 500, Tyson Foods has fallen short of the earnings mark in each of the last four quarters. But with consumer staple stocks attempting to stage a comeback, is TSN a buy?
The established food company is a processor and marketer of chicken, pork, and beef. Tyson Foods markets its products under recognized brands such as Jimmy Dean, Hillshire Farm, and Ball Park. The company is expected to deliver a third-quarter profit of $0.33/share, which would reflect negative growth of -79.75% versus the same quarter last year. Revenues are projected to decline -0.23% to $13.71 billion.
TSN stock is currently a Zacks Rank #4 (Sell). The company has posted a trailing four-quarter average earnings miss of -50.5%. Consistently missing earnings estimates by such a wide margin is a huge red flag. Tyson Foods continues to grapple with stiff competition and weak margins. The stock should be avoided as better alternatives exist in the current landscape.