Why Analysts Are Confident about Tyson Foods Stock
The majority of analysts recommend a “buy”
Most of the analysts covering Tyson Foods (TSN) stock maintain a positive outlook. Tyson Foods’ strong top-line and bottom-line performance and upbeat guidance are making analysts confident about the prospects of the company.
Tyson Foods is witnessing strong sales across all its segments driven by increased demand. Meanwhile, its focus on portfolio restructuring by exiting slow-moving non-protein businesses and higher cost savings further support its profitability growth.
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Tyson Foods stock is up 14.2% on a YTD (year-to-date) basis as of September 29, 2017, and has outperformed its peers in terms of stock price gains. Notably, most of this growth followed the company’s upbeat guidance.
During the same period, Kellogg (K), General Mills (GIS), Conagra (CAG), J.M. Smucker (SJM), and Kraft Heinz (KHC) saw falls of 15.4%, 16.2%, 14.7%, 18.1%, and 11.2%, respectively. Meanwhile, the S&P 500 (SPX-INDEX) is up 12.5% since the start of the year.
Ratings summary and target price
Analysts have given TSN stock a score of 2.3 on a scale of 1.0 to 5.0. A score of 1.0 means a “strong buy,” while 5.0 implies a “strong sell.” Meanwhile, 64% of analysts rated TSN stock a “buy,” 29% recommended a “hold,” and 7% maintained a “sell” rating. TSN stock closed at $70.45 on September 29, 2017, reflecting an upside of 3% to the analysts’ target price of $72.50 per share.
In comparison, analysts continue to maintain a neutral outlook on Kellogg, General Mills, and J.M. Smucker stock. Meanwhile, they remain confident on Conagra and Kraft Heinz stock.