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Tyson Foods (TSN) Up More Than 15% in 3 Months: Here's Why
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Tyson Foods Inc. (TSN - Free Report) is well poised on a growing brand portfolio. The renowned meat products company is benefiting from strength in growth pillars. The company is undertaking several operational and supply chain efficiency programs to improve itself in the long run.
The Zacks Rank #1 (Strong Buy) company’s shares have rallied 16.4% in the past three months compared with the industry’s growth of 8.9%. The stock has gained the Zacks Consumer Staples’s growth of 7.4% during this time.
Let’s delve deeper.
Strength in Brand Portfolio
Tyson Foods’ core business lines boast a portfolio of iconic retail brands, including Tyson, Jimmy Dean, Hillshire Farm and Ball Park. In the fourth quarter of fiscal 2023, such brands witnessed volume growth of 3.2% year over year, way ahead of other competitors. Management continues to see market share leadership across most retail categories in terms of pound and dollar share gains. The company intends to stay focused on merchandising and advertising to support its brands.
Growth Pillars: Key Driver
Tyson Foods’ growth strategy is based on three main pillars, including driving growth across the core protein platform. The company expects global demand for protein to continue rising and remains well-placed to cater to it. Management intends to stay focused on merchandising and advertising to support its brands. While Tyson Foods is pleased with its brand strength, it is constantly building innovations to expand the appeal and market opportunities for its products.
The company is benefiting from operational enhancements while making incremental improvements in yield and live operations. The company’s ongoing productivity initiatives based on procurement, logistics and digitalization are likely to solidify the company’s fundamentals.
Expansion Efforts Bode Well
Tyson Foods is investing in capacity expansion and automation technology investments. In this regard, the company continues to accelerate digitalization via supply chain planning and execution processes to enhance customer service. Management is optimizing its plant network by adding fully-cooked capacity, converting plants for value-added production, executing plant flexibility and strengthening the portfolio mix.
The company continues to evaluate its production footprint and network to fuel efficiencies. In this regard, management shut down six less efficient chicken plants. Tyson Foods also decided to shut down two smaller fresh meat case-ready value-added facilities.
TSN is focused on efforts to expand into the international markets as part of its strategic growth plan. Recently, management inaugurated a new fully-cooked food production facility in Danville, VA, worth $300 million. This move is in sync with Tyson Foods’ strategy to fuel sustained growth, enhance operational efficiency and invest in its poultry space.
Wrapping Up
Tyson Foods has been witnessing weakness in the Pork segment stemming from supply-and-demand imbalances, which is affecting spreads. Although management is witnessing some improvement in spreads along with reduced grain costs, it is still facing an imbalance between the supply and demand of pork. Also, rising interest rates and inflationary headwinds are a concern. Focus on growth endeavors is likely to keep the company in investor’s good books.
The Zacks Consensus Estimate for Sysco’s current fiscal year sales and earnings suggests growth of 4.1% and almost 8%, respectively, from the corresponding year-ago reported figure.
Ingredion Incorporated (INGR - Free Report) , which produces and sells sweeteners, starches, nutrition ingredients and biomaterial solutions, holds a Zacks Rank #2. INGR delivered a positive earnings surprise of 23.9% in the last reported quarter.
The Zacks Consensus Estimate for Ingredion Incorporated’s current financial-year sales and earnings suggests growth of around 5% and 24.7%, respectively, from the year-ago reported numbers.
Lamb Weston (LW - Free Report) , which offers frozen potato products, currently carries a Zacks Rank #2. LW delivered an earnings surprise of 3.6% in the last reported quarter.
The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings implies growth of 28.1% and 26.3%, respectively, from the year-ago reported numbers.
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Tyson Foods (TSN) Up More Than 15% in 3 Months: Here's Why
Tyson Foods Inc. (TSN - Free Report) is well poised on a growing brand portfolio. The renowned meat products company is benefiting from strength in growth pillars. The company is undertaking several operational and supply chain efficiency programs to improve itself in the long run.
The Zacks Rank #1 (Strong Buy) company’s shares have rallied 16.4% in the past three months compared with the industry’s growth of 8.9%. The stock has gained the Zacks Consumer Staples’s growth of 7.4% during this time.
Let’s delve deeper.
Strength in Brand Portfolio
Tyson Foods’ core business lines boast a portfolio of iconic retail brands, including Tyson, Jimmy Dean, Hillshire Farm and Ball Park. In the fourth quarter of fiscal 2023, such brands witnessed volume growth of 3.2% year over year, way ahead of other competitors. Management continues to see market share leadership across most retail categories in terms of pound and dollar share gains. The company intends to stay focused on merchandising and advertising to support its brands.
Growth Pillars: Key Driver
Tyson Foods’ growth strategy is based on three main pillars, including driving growth across the core protein platform. The company expects global demand for protein to continue rising and remains well-placed to cater to it. Management intends to stay focused on merchandising and advertising to support its brands. While Tyson Foods is pleased with its brand strength, it is constantly building innovations to expand the appeal and market opportunities for its products.
The company is benefiting from operational enhancements while making incremental improvements in yield and live operations. The company’s ongoing productivity initiatives based on procurement, logistics and digitalization are likely to solidify the company’s fundamentals.
Expansion Efforts Bode Well
Tyson Foods is investing in capacity expansion and automation technology investments. In this regard, the company continues to accelerate digitalization via supply chain planning and execution processes to enhance customer service. Management is optimizing its plant network by adding fully-cooked capacity, converting plants for value-added production, executing plant flexibility and strengthening the portfolio mix.
The company continues to evaluate its production footprint and network to fuel efficiencies. In this regard, management shut down six less efficient chicken plants. Tyson Foods also decided to shut down two smaller fresh meat case-ready value-added facilities.
TSN is focused on efforts to expand into the international markets as part of its strategic growth plan. Recently, management inaugurated a new fully-cooked food production facility in Danville, VA, worth $300 million. This move is in sync with Tyson Foods’ strategy to fuel sustained growth, enhance operational efficiency and invest in its poultry space.
Wrapping Up
Tyson Foods has been witnessing weakness in the Pork segment stemming from supply-and-demand imbalances, which is affecting spreads. Although management is witnessing some improvement in spreads along with reduced grain costs, it is still facing an imbalance between the supply and demand of pork. Also, rising interest rates and inflationary headwinds are a concern. Focus on growth endeavors is likely to keep the company in investor’s good books.
Appetizing Food Bets
Sysco Corporation (SYY - Free Report) , a food and related product company, currently has a Zacks Rank #2 (Buy). SYY delivered a positive earnings surprise in the last two quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sysco’s current fiscal year sales and earnings suggests growth of 4.1% and almost 8%, respectively, from the corresponding year-ago reported figure.
Ingredion Incorporated (INGR - Free Report) , which produces and sells sweeteners, starches, nutrition ingredients and biomaterial solutions, holds a Zacks Rank #2. INGR delivered a positive earnings surprise of 23.9% in the last reported quarter.
The Zacks Consensus Estimate for Ingredion Incorporated’s current financial-year sales and earnings suggests growth of around 5% and 24.7%, respectively, from the year-ago reported numbers.
Lamb Weston (LW - Free Report) , which offers frozen potato products, currently carries a Zacks Rank #2. LW delivered an earnings surprise of 3.6% in the last reported quarter.
The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings implies growth of 28.1% and 26.3%, respectively, from the year-ago reported numbers.