It's really too bad that Tyson Foods (NYSE:TSN) doesn't offer a breaded or Buffalo-style crow, as I have to eat a plateful of it with this stock. I didn't like this stock back in the fall of 2012, and thought that the post-earnings reaction then was overdone. As it turns out, though, the stock had another 28% left to appreciate, making it a very solid performer in what has been a strong consumer sector overall.
At the risk of doubling down on a bad call, I'm still not very partial to this stock. Although I do believe that Tyson has the opportunity to grow its international and packaged foods businesses and generate meaningfully better margins, this quarter's margin under-performance highlights just how challenging it can be to deliver on a quarter-to-quarter basis. In the context of what increasingly looks like an overheated consumer sector, I'd be careful about piling into Tyson shares today.
Please read more here:
http://www.investopedia.com/stock-analysis/050613/will-tyson-serve-bulls-or-serve-bulls-tsn-ppc-yum-mcd-brfs.aspx
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» Investopedia: Will Tyson Serve The Bulls Or Serve Up The Bulls?
Tuesday, May 7, 2013
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