Why Hillshire Brands (HSH) Stock Hit a One-Year High Today (Update)

Update (4:40 p.m.): Updated with Tuesday market close information.

NEW YORK (TheStreet) -- Hillshire Brands  (HSH) rose to a one-year high of $58.89 on Tuesday as Pilgrim's Pride  (PPC) fired another shot in the bidding war with Tyson Foods  (TSN) to acquire the Jimmy Dean sausage maker with a $7.7 billion all-cash offer.

Pilgrim's Pride originally offered $6.4 billion for Hillshire, but Tyson topped that with a $6.8 billion offer. Now, Pilgrim's Pride has one-upped Tyson by nearly $1 billion and is offering $55 a share for the coveted company. Hillshire maintains it cannot break its merger agreement with Pinnacle Foods  (PF) but says it is open to offers from both Pilgrim's Pride and Tyson.

Hillshire's $4.2 billion merger with Pinnacle started this frenzy for the company behind the Sara Lee brand.

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The stock closed up 9.48%, or $5.08, to $58.65. More than 14 million shares changed hands, which easily surpassed the average volume of 3,078,290.

Separately, 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."

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