Tyson Foods, Inc. (TSN), headquartered in Springdale, Arkansas, is a leading global producer and marketer of chicken, beef, pork, prepared foods, and related products. With a market cap of $20.9 billion, Tyson is one of the largest food companies in the world and a prominent player in the protein sector.
Shares of this farm product giant have underperformed the broader market considerably over the past year. TSN has gained 33.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.5%. In 2024, TSN’s stock is up 16.6%, compared to the SPX’s 25.5% rise on a YTD basis.
Narrowing the focus, TSN has outpaced the Nasdaq Food & Beverage ETF’s (FTXG) 4.7% rise over the past 52 weeks and a marginal decline in 2024.
On Nov. 12, TSN released its Q4 earnings, and its shares popped 10% in the morning session. Its results significantly exceeded analysts’ expectations for earnings, gross margin and EBITDA, with sales also slightly surpassing forecasts.
For the current fiscal year, ending in September 2025, analysts expect TSN’s EPS to grow 16.6% to $3.30 on a diluted basis. The company’s earnings surprise history is solid. It beat the consensus estimate in each of the last four quarters.
However, among the eight analysts covering TSN stock, the consensus rating is a “Hold,” a step down from “Moderate Buy” two months ago. The current rating is based on two “Strong Buy” ratings, five “Holds,” and one “Strong Sell.”
This configuration has been stable over the past months.
On October 15, Bank of America Securities maintained a “Neutral” rating on Tyson Foods and lowered the price target from $62 to $60.
While TSN currently trades above its mean price target of $60.33, the Street-high price target of $76 suggests an upside potential of 21.3% from the prevailing price level.
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