Tyson Foods Inc. cut back its profit projections for 2018, as tariffs and trade uncertainties take a toll on its export market.
The largest U.S. meat producer predicts its earnings for fiscal 2018 (excluding one-time items) to be about $5.70 to $6 a share - compared with a previous forecast of $6.55 to $6.70. While tariffs slapped by China and Mexico on American pork (following U.S. levies on imported steel and aluminum) pose headwinds to its meat export market, Tyson is also hurting from slowing domestic demand for chicken and commodity market volatility.
It is a challenging environment for U.S. meat producers like Tyson, as the export-heavy industry is undergoing a surge in production (and therefore potentially more surplus to be unloaded) amid global trade tensions.
Tyson Foods' Chief Executive Officer Tom Hayes has expressed that the company would be seeking pricing and cost management strategies to offset the effects of freight and feed ingredient costs.
TSN saw its Momentum Indicator move above the 0 level on April 19, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 90 similar instances where the indicator turned positive. In of the 90 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for TSN just turned positive on May 03, 2024. Looking at past instances where TSN's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSN advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 187 cases where TSN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TSN broke above its upper Bollinger Band on April 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. TSN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.138) is normal, around the industry mean (16.679). P/E Ratio (48.532) is within average values for comparable stocks, (26.082). Projected Growth (PEG Ratio) (18.507) is also within normal values, averaging (13.226). Dividend Yield (0.033) settles around the average of (0.126) among similar stocks. P/S Ratio (0.386) is also within normal values, averaging (7.109).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TSN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a distributer of chicken, beef, pork, prepared foods and related allied products
Industry AgriculturalCommoditiesMilling