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The Zacks Analyst Blog Highlights: Tyson Foods, Altria Group, Reynolds American and Post

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For Immediate Release

Chicago, IL – July 14, 2016 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Tyson Foods Inc. (TSN - Free Report) , Altria Group Inc. (MO - Free Report) , Reynolds American Inc. and Post Holdings Inc. (POST - Free Report) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

Is Tyson Foods (TSN - Free Report) a Good Pick Amid Market Volatility?

We issued an updated research report on Tyson Foods Inc. ( TSN) on Jul 12.

Strong Results in Past Quarters

Tyson Foods has been posting better-than-expected results over the past several quarters, backed by continuous product innovation and strong momentum in most of its business segments.

In the second quarter of fiscal 2016, as reported on May 9, 2016, Tyson’s earnings and revenues beat the Zacks Consensus Estimate, because of higher margins. The improvement in operating margins was driven by better operational execution and lower feed ingredient costs in the quarter. Importantly, the company increased its annual earnings outlook and, now, expects earnings in the range of $4.20 to $4.30 per share in fiscal 2016, compared to an earlier estimated range of $3.85 to $3.95.

TYSON FOODS A Price and Consensus | TYSON FOODS A Quote

Product Innovation

The company continuously innovates while adding new products to the already rich food lineup. Tyson management has focused on innovation, making it an important facet of their growth strategy.

The company intends to launch an extension of the Hillshire Snacking platform, and a new Tyson Naturals line of frozen chicken products featuring all-natural ingredients, that too with no antibiotics. Both will come in Sep 2017. This is expected to boost initiatives in the coming quarters.

Regular Shareholder Returns

To ensure shareholder trust, management has been raising dividend consistently for the last five years at an average annual rate of 11.5%.

In Nov 2015, Tyson announced a rise of 50% in its quarterly dividend to $015 cents per share. Starting fiscal 2017, Tyson expects to raise its annual dividend by 10 cents per year.

Some Concerns Remain

However, beef segment has not been performing well for the past few quarters. Lower cattle supply and higher fed cattle costs have been responsible for the sluggishness in the segment over the past few quarters. Tyson, currently carrying a Zacks Rank #3 (Hold) has also decided to reduce its beef production capacity following lower cattle supply. The beef business is expected to grow at the low end of the normalized range of 1.5% to 3% for fiscal 2016.

Bottom Line

Better-ranked stocks in the consumer staples sector include Altria Group Inc. (MO), Reynolds American Inc. (RAI) and Post Holdings Inc. ( POST). While Post Holdings sports a Zacks Rank #1 (Strong Buy), Altria Group and Reynolds American carry a Zacks Rank #2 (Buy).

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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

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