Is Tyson Foods' Stock a Good Buy Amid Rising Protein Demand?

Zacks
19小时前

Tyson Foods, Inc. TSN is riding a wave of strong demand for high-protein diets. With a diversified protein portfolio and a solid brand presence, it is making strategic moves to capitalize on changing consumer preferences and improve operational efficiency.

Tyson Foods’ first-quarter fiscal 2025 performance marked its strongest quarterly results in more than two years, backed by better execution across its operations, particularly in the chicken segment. A solid performance encouraged management to raise its fiscal 2025 outlook. The company’s shares have gained 4.3% in the past three months against the industry’s decline of 13.5%.

Tyson’s Strength Lies in its Protein Portfolio

Tyson Foods’ diversified protein portfolio enables the company to navigate market cycles effectively. A focus on expanding its international footprint by improving capacity utilization and aligning operations with regional market needs further diversifies the company’s growth avenues. Consumer demand for high-protein diets remains strong, with 71% of U.S. consumers seeking to increase protein intake — up from 59% in 2022. This trend supports Tyson Foods’ multi-protein portfolio, giving it a competitive edge in a structurally growing market.

Global protein consumption is expected to rise, reinforcing the company’s ability to capture both domestic and international demand tailwinds. Tyson Foods’ multi-channel, multi-protein strategy is central to its long-term resilience and growth, allowing it to capitalize on different market opportunities as they arise.

Tyson Foods boasts ownership of some of the most iconic protein brands, including Tyson, Jimmy Dean, Hillshire Farm and Ball Park. These brands hold the number one or two market share in eight core business lines, cementing Tyson Foods’ leadership position in the protein sector. The company prioritizes innovation, marketing and strong customer partnerships to meet consumer preferences and drive long-term brand loyalty.




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TSN’s Strategies Growth Efforts

Tyson Foods is leveraging digital advancements to enhance consumer engagement and operational efficiency. It has implemented AI-driven solutions in foodservice, optimizing product discovery. The company has enhanced supply chain and demand forecasting, improving order fulfillment. It has also expanded its e-commerce and omnichannel presence, capitalizing on shifting consumer trends. These initiatives position Tyson Foods as a technologically adaptive food leader, driving long-term market share gains.

Tyson Foods’ commitment to understanding and responding to evolving consumer preferences. By leveraging consumer insights and fostering brand loyalty through quality products, the company meets market demands and cultivates lasting relationships with customers.

What Lies Ahead for Tyson Foods?

With consumer demand for protein remaining strong, Tyson Foods’ diversified multi-channel, multi-protein portfolio places it well to meet this need while solidifying its status as a leading global food company. Given the strong first-quarter results, management recently raised its fiscal 2025 adjusted operating income guidance to a range of $1.9-$2.3 billion from the earlier guided range of $1.8-$2.2 billion, signaling confidence in continued earnings momentum. The company also increased its sales guidance, now projecting results to range from flat to a 1% increase, primarily fueled by volume growth, reflecting strong consumer demand for protein.

With rising consumer demand for protein and an improved financial outlook, Tyson Foods is well-positioned for long-term growth. At present, TSN carries a Zacks Rank #2 (Buy).

Other Solid Food Bets

Pilgrim’s Pride PPC, which produces, processes, markets and distributes fresh, frozen and value-added chicken and pork products, currently sports a Zacks Rank of 1 (Strong Buy). PPC delivered a positive earnings surprise of 25.7% in the trailing four quarters, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Pilgrim’s Pride’s current financial-year earnings indicates a decline of 2.6% from the prior-year reported level.

Beyond Meat BYND, which develops, manufactures, markets and sells plant-based meat products, currently carries a Zacks Rank #2. The Zacks Consensus Estimate for BYND’s current fiscal year bottom line has improved from a loss of $1.66 to a loss of $1.58 in the past 30 days.

The Zacks Consensus Estimate for Beyond Meat’s current financial year bottom line implies growth of 31.6% from the year-ago reported number. BYND delivered a negative earnings surprise of 15.5% in the trailing four quarters, on average.

Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Post Holdings’ current fiscal-year sales and earnings indicates growth of 0.3% and 2.2%, respectively, from the prior-year reported levels. POST delivered a trailing four-quarter earnings surprise of 22.3%, on average.









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This article originally published on Zacks Investment Research (zacks.com).

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