雅虎香港財經 Tyson Foods (TSN) Up More Than 25% in 6 Months: Here's Why
Tyson Foods Inc. TSN appears well-positioned on the back of a growing brand portfolio. The renowned meat products company is leveraging the strength of its key growth drivers to its advantage. The company is implementing various operational and supply chain efficiency programs to enhance its long-term prospects.
The company sustained its positive momentum in the second quarter of fiscal 2024 while advancing its key initiatives. The strategies in place are yielding tangible results, as reflected in year over year bottom-line growth.
The Zacks Rank #2 (Buy) company’s shares have rallied 25.6% in the past three months compared with the industry’s growth of 22.4%. The stock has appreciated the Zacks Consumer Staples’s growth of 7.6% during this time.
Let’s delve deeper.
Brand Strength
TSN benefits from a diverse portfolio of core proteins, including chicken, pork and beef. The company's iconic brands, such as Tyson, Jimmy Dean and Hillshire Farm, continue to resonate with consumers, contributing to market share growth. It continues to invest in brand building and innovation to maintain and grow its market share. It prioritizes innovation, marketing and strong customer partnerships to meet consumer preferences and drive long-term brand loyalty.
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Key Strategies in Place
Tyson Foods’ growth strategy is based on three main pillars. These include driving growth across the core protein platform. The company expects global demand for protein to continue rising and remains well-placed to cater to it. Tyson Foods maintains a leadership position in the protein industry, boasting some of the most renowned brands in food and a wide range of offerings. This resilience allows it to sustain a healthy market share despite a challenging consumer environment.
While Tyson Foods is pleased with its brand strength, it is constantly building innovations to expand the appeal and market opportunities for its products. The company is benefiting from operational enhancements while making incremental improvements in yield and live operations. Ongoing productivity initiatives based on procurement, logistics and digitalization are likely to solidify the company’s fundamentals. The company is refining its digital capabilities, leveraging data, automation and AI technology to enhance decision-making and drive better outcomes.
Measures to Boost Efficiency
Tyson Foods focuses on operational excellence across its segments. The company has undertaken bold actions to enhance operational efficiency, including plant closures, improvements in live operations, yield optimization and labor efficiency. This effort involved the closure of the last of six chicken facilities and two case-ready beef facilities. One of its pork plants is slated for closure as part of this ongoing optimization process. These actions are likely to fuel efficiencies across segments. The company is investing in capacity expansion and automation technology investments. Tyson Foods projects capital expenditures to be $1.2-$1.4 billion for the fiscal 2024. These include expenditures related to capacity expansion, automation and product and brand innovation.
Wrapping Up
As the company progresses into the back half of the fiscal 2024, it is focused on executing fundamental strategies and maximizing the multi-protein portfolio. For the fiscal 2024, the United States Department of Agriculture (USDA) suggests domestic protein production (beef, pork, chicken and turkey) to increase slightly from fiscal 2023 levels. Management envisions adjusted operating income in the $1.4-$1.8 billion band in the fiscal 2024. Total company sales are projected to be relatively flat in fiscal 2024 versus fiscal 2023.
Top 3 Picks
Vital Farms Inc. VITL offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers.
The J. M. Smucker Company SJM, a branded food and beverage product company, currently carries a Zacks Rank #2 (Buy). SJM has a trailing four-quarter earnings surprise of 7.6%, on average.
The Zacks Consensus Estimate for J. M. Smucker’s current fiscal year earnings indicates growth of 7.6% from the year-ago reported figure.
Utz Brands Inc. UTZ manufactures a diverse portfolio of salty snacks, currently carrying a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2% on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 24.6% from the year-ago reported numbers.
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