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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