Beef, chicken and pork giant Tyson Foods has weathered the 2022 market downturn better than most companies. And it's forming a base with a 100.82 buy point with its next quarterly report set for May 9. The current formation is a second-stage consolidation, a bullish indicator. Tyson stock was down fractionally Monday.
Consensus analyst estimates call for EPS growth of 38% for the quarter, and 3% growth for the full year.
Tyson Stock Gains Due Partly To McDonald's Business
Tyson's top and bottom line growth moved higher last quarter. Earnings were up 48% to $2.87 per share. That compares with 35% growth in the prior report. Revenue climbed 24% in its most recent quarter, to $12.9 billion. Tyson stock has soared 122% from a Covid market low 42.57 in late March 2020 to a 94.51 close Monday. It's stayed above its 200-day line all that time, and mostly traveled above its 50-day.
Tyson stock has a 91 Composite Rating, putting it in the top 9% of stocks on a group of the top five ratings used by CAN SLIM investors. It has an 86 EPS Rating and a 91 Relative Strength Rating. The RS Rating compares a stock's price performance against that of all other stocks over the past 52 weeks. One yellow flag is its D- Accumulation/Distribution Rating, on an A+ to E scale with A+ tops. Given the market downturn a number of stocks have seen their A/E rating slump.
Springdale, Ark.-based Tyson is a key supplier to McDonald's, which recently named Tyson its supplier of the year. "Additionally, we were recognized for collaborating with McDonald's to drive change through sustainability ... and to create scalable projects to help meet science-based targets and build supply chain resilience," Tyson's McDonald's Business President Sandy Luckcuck said in a news release. She added, "We have also partnered with McDonald's to improve animal health and welfare around the world."
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Among Top 5 In Its Group
Tyson stock holds the No. 4 rank among its peers in the Food-Meat Products industry group. Sanderson Farms is the top-ranked stock in the group. Cal-Maine Foods and Hormel Foods are also in the top 5.
Be aware that jumping into a stock right as it gets ready to report means you likely won't have enough time to build a profit cushion before the release. That leaves you exposed to a sudden downturn if the company meet or beat analyst and investor expectations. You can minimize your exposure by waiting to see how the company reports and how the market reacts.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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