Why Hillshire Brands (HSH) Stock Is Surging This Morning

NEW YORK (TheStreet) -- Shares of Hillshire Brands Co. (HSH) are up 8.46% to $58.10 in pre-market trade after Pilgrim's Pride Corp. (PPC) raised its offer for the food products company by over $1 billion, sources say, the Wall Street Journal reports.

The new offer from Pilgrim's, a unit of Brazilian meat giant JBS SA  (JBSAY), values Hillshire at $55 a share, the sources said, or more than $6.7 billion.

That tops a $50 a share offer for Hillshire last week from Tyson Foods Inc. (TSN), the Journal said.

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TheStreet Ratings team rates HILLSHIRE BRANDS CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate HILLSHIRE BRANDS CO (HSH) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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