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Momentum Stocks Watch: Tyson Foods (TSN)

-- Sunday, September 13, 2020, 11:07 --

Company Profile:

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods. It offers food products under Tyson, Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright, Aidells and State Fair brands. The company was founded in 1935 and is headquartered in Springdale, Arkansas and currently employs 141,000 full-time employees.

Recent News:

The company is scheduled to report its next earnings report on Tuesday, November 10th. Wall Street brokerages expect the company to post sales of $11.11 billion for the current quarter, Zacks Investment Research reports. The company posted sales of $10.88 billion in the same quarter last year, which would suggest a positive year-over-year growth rate of 2.1%.

For the third quarter, the company reported GAAP EPS of $1.44, down 22% from prior year; Adjusted EPS of $1.40, down 5% from prior year. GAAP operating income of $775 million and Adjusted operating income of $760 million.

on August 6, 2020, the Board of Directors of the company declared a quarterly dividend of $0.42 per share on Class A common stock and $0.378 per share on Class B common stock, payable on December 15, 2020, to shareholders of record at the close of business on December 1, 2020.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TSN’s strengths can be seen in its better growth, better profitability, better solvency and better efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and The RSI stands at 54.86 with positive bias. We rate Tyson Foods (TSN) a STRONG BUY.

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