#4 - Tyson Foods (NYSE:TSN)
Tyson Foods (NYSE: TSN)– Tyson was one of the first companies to be hit by retaliatory tariffs from China. Back in April, the company was directly impacted by China’s 25 percent tariff on pork. According to industry data, China was the second largest importer of pork by volume in 2017 and there are few other countries that are poised to pick up the extra capacity. The anticipated backup in U.S. meat supplies sent Tyson’s share prices tumbling over six percent. Then in July, shares dropped 7.6 percent to a 12-month low of $58.72 on the news that the company had cut its earnings outlook due to the tariffs. According to CEO Tom Hayes, “changing global trade policies here and abroad” and “the uncertainty of any resolution” were the key factors contributing to both lower prices and oversupply of their products in the United States. The company did report strong earnings for the last quarter. However, some of that may have been due to selling off their pizza crust business to the private equity firm Peak Rock Capital. The company also announced that they are taking steps to divest themselves of additional bakery operations to focus on expanding their leadership position in the protein segment of their business.
About Tyson Foods
Tyson Foods, Inc, together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods. The company processes live fed cattle and hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products, including breaded chicken strips, nuggets, patties, and other ready-to-fix or fully cooked chicken parts; and supplies poultry breeding stock.
Read More - Current Price
- $57.03
- Consensus Rating
- Reduce
- Ratings Breakdown
- 1 Buy Ratings, 7 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $60.70 (6.4% Upside)
