Why Tyson Foods (TSN) Stock Is Down Today

What Happened?

Shares of meat company Tyson Foods (NYSE:TSN) fell 2.1% in the afternoon session after peer, Hormel, reported disappointing earnings and lowered its financial outlook for the year. 

The negative sentiment appears to be a sector-wide reaction, as Hormel's stock experienced a sharp decline. The Spam maker's earnings fell short of Wall Street's expectations, prompting the company to cut its forecast. When a major company like Hormel signals weakness, investors often become concerned that similar challenges could affect peers in the same industry. This can lead to a sell-off in related stocks, such as Tyson Foods, as the market anticipates potential headwinds for the entire food sector.

The shares closed the day at $56.12, down 2.3% from previous close.

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What Is The Market Telling Us

Tyson Foods’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 24 days ago when the stock gained 4.7% on the news that the company reported strong fiscal third-quarter results that surpassed analyst expectations. The meat processing giant posted revenue of approximately $13.9 billion, a 4% increase from the same period last year, which topped market forecasts. The company's adjusted earnings per share landed at $0.91, also beating consensus estimates and improving from the prior year. Strong consumer demand for its chicken and packaged food products fueled the positive performance.

Tyson Foods is down 3.5% since the beginning of the year, and at $56.12 per share, it is trading 14.8% below its 52-week high of $65.87 from September 2024. Investors who bought $1,000 worth of Tyson Foods’s shares 5 years ago would now be looking at an investment worth $878.11.

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