The recent drought has not been kind to leading poultry producer Tyson Foods (TSN). Corn is a major source of chicken feed, and rising corn prices are leading to fast-shrinking profit margins on every bird sold. (Tyson is also a major producer of beef and pork as well, which are also affected by corn feed prices.)
Just a month ago, analysts though Tyson would earn nearly $2.30 a share by 2013. Now they think the company will be lucky to earn $1.50 next year. Yet paradoxically, this is precisely the backdrop in place to find this stock appealing.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts