|
|
|
|
|||||
|
|
|
Chicago, IL – July 11, 2025 – Today, Zacks Equity Research discusses Tyson Foods, Inc. TSN and Beyond Meat, Inc. BYND.
Industry: Food - Meat Products
Link: https://www.zacks.com/commentary/2570739/2-meat-stocks-to-keep-an-eye-on-despite-market-challenges
The Zacks Food – Meat Products industry is currently navigating headwinds such as elevated input costs and operational expenses. In addition, export-related hurdles — including trade uncertainties, port disruptions and robust domestic demand — are weighing on international sales and creating revenue growth challenges.
However, leading companies like Tyson Foods, Inc. and Beyond Meat, Inc. continue to demonstrate resilience. These companies are benefiting from strong consumer demand for high-protein diets and an increasing emphasis on health and wellness, positioning them for continued growth despite broader industry pressure.
The Zacks Food – Meat Products industry comprises companies that manufacture, process, market, distribute and sell a wide range of meat products like chicken, pork, beef, prepared food and plant-based meats. Some companies also offer poultry and turkey products, alongside providing nutritional food products and supplements, desserts and drink mixes and industrial gelatin products.
Most companies offer their products to retail and foodservice customers, while some cater to deli and commercial operators, including grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, industrial food processing companies, chain restaurants, international export companies, school cafeterias and hospitals, among others. Some products offered include frozen whole chicken, primary pork cuts, salads, sandwiches and meatballs.
Cost-Related Pressure: Meat producers are grappling with rising cost pressure as elevated prices for feed, raw materials, labor and transportation drive up overall production expenses. Persistent inflation continues to strain profit margins across the industry.
At the same time, elevated living costs are reshaping consumer shopping habits, with households visiting stores more frequently but buying less per trip. This signals tighter budgets. This shift in behavior poses a challenge even for traditionally affordable protein sources like chicken, where demand could soften amid ongoing economic uncertainty. These combined factors may weigh on sales volumes and dampen profitability for meat companies moving forward.
Export Related Challenges: Meat producers encounter export-related challenges driven by trade uncertainties and biosecurity concerns, which impact international sales performance. Declines in export volumes are influenced by multiple factors, including winter weather-related port disruptions, the threat of a potential port strike and strong domestic demand that limits the supply available for overseas markets.
Additionally, the evolving U.S.-China trade relationship continues to add a layer of unpredictability. These challenges, coupled with global economic uncertainties and increased competition from alternative protein sources, pose risks to revenue growth and could erode market share in key international markets.
Increased Protein Demand & Plant-Based Alternatives: The growing popularity of high-protein diets is fueling significant growth for meat companies, pushing them to constantly innovate their product offerings. This shift is largely driven by increased health consciousness, particularly among fitness enthusiasts who follow high-protein regimens, such as the keto diet.
At the same time, the demand for plant-based meat alternatives is gaining traction as more consumers opt for healthier, fresher choices over conventional meat products. These plant-based alternatives are favored for their minimal use of artificial ingredients and additives, making them a more wholesome option. Industry experts believe that plant-based protein could significantly disrupt the traditional meat industry, positioning itself as a formidable contender in the broader protein market.
The Zacks Food – Meat Products industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #201, which places it in the bottom 18% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Given the industry’s dismal prospects, we present a few stocks that you may want to consider for your portfolio. However, before that, it’s worth taking a look at the industry’s performance and current valuation.
The Zacks Food – Meat Products industry has underperformed the broader Zacks Consumer Staples sector and the S&P 500 over the past year.
The industry has declined 10.6% over this period against the broader sector’s growth of 2.8% and the S&P 500’s rise of 11.1%.
On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing Consumer Staple stocks, the industry is currently trading at 12.44X compared with the S&P 500’s 22.52X and the sector’s 17.42X.
Over the past five years, the industry has traded as high as 21.76X and as low as 12.24X, with the median being 16.46X.
Tyson Foods: This Zacks Rank #3 (Hold) stock is a leading player in the global protein industry, offering a comprehensive range of chicken, beef and pork products. Tyson Foods’ diversified multi-protein strategy allows it to navigate industry volatility while capitalizing on the rising demand for high-protein diets.
Supported by well-established brands like Tyson, Jimmy Dean and Hillshire Farm, Tyson Foods benefits from strong brand recognition and widespread household presence. The company is also leveraging digital transformation and AI-driven technologies to enhance supply chain efficiency and improve consumer engagement.
With a resilient business model and a strong multi-channel distribution network, Tyson Foods is well-positioned for long-term, sustainable growth in the dynamic protein market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for TSN’s current fiscal year earnings per share (EPS) has moved down from $3.90 to $3.87 in the last seven days. Tyson Foods has a trailing four-quarter earnings surprise of roughly 34.7%, on average. Shares of TSN have declined 3.2% in the past year.
Beyond Meat: This Zacks Rank #3 company is capitalizing on the growing consumer demand for healthier, sustainable, and ethically sourced food options. As a leading producer of plant-based meat alternatives, Beyond Meat benefits from a strong and innovative product lineup that continues to evolve with changing consumer preferences.
Beyond Meat is actively expanding its portfolio while streamlining operations through production consolidation and strategic investments in automation — initiatives that are aimed at enhancing efficiency. With rising interest in plant-based diets and a rapidly expanding market, Beyond Meat is well-positioned for long-term growth and success in the alternative protein space.
The Zacks Consensus Estimate for BYND’s loss for the current fiscal year has remained unchanged over the past 30 days at $1.73 per share. Shares of BYND have plunged 48.7% in the past year.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| Jul-11 | |
| Jul-10 | |
| Jul-09 | |
| Jul-09 | |
| Jul-09 | |
| Jul-09 | |
| Jul-07 | |
| Jul-07 | |
| Jul-07 | |
| Jul-03 | |
| Jul-03 | |
| Jul-03 | |
| Jul-02 | |
| Jul-02 | |
| Jul-02 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite