Jim Cramer Says "It's Not Clear That the Beef Tariffs Helped Tyson"

Tyson Foods, Inc. (NYSE:TSN) is one of the stocks Jim Cramer recently talked about. Cramer noted that he likes the company’s stock at these levels, as he commented:

“How about the other turkey play, Tyson Foods? Well, I come out pretty strangely on this one. While Tyson’s been trading sideways for years, it’s held up much better than Hormel. Tyson’s been dealing with the same general problems… but they’ve managed the situation much better than Hormel. Tyson’s been able to steadily grow its earnings for years since the big reset in 2022.

Plus, earlier this month, Tyson reported a strong quarter. While the company had a revenue miss, it also earned $1.15 per share. Wall Street was only looking for 84 cents. On top of that, Tyson gave strong guidance for the year ahead, which is why the stock jumped 5% over the next two days. It’s kept climbing from there. What else has changed here? 10 days ago, President Trump rolled back the so-called reciprocal tariffs on a number of food items, including beef. Is that a good or bad thing for Tyson? Tough to say.

Looking at the performance of the company’s beef division in fiscal 2025 with the tariffs in place for much of that year, we saw sales up over 5%, driven entirely by a 9% increase in price. On the other hand, the beef segment lost much more money last year than it did the year before. So it’s not clear that the beef tariffs helped Tyson, which is why I’m not worried that they’re going to go away. Honestly, I like Tyson here. The stock’s still very reasonably priced at just under 15 times next year’s earnings estimates. Hey, it’s got a solid 3.6% dividend yield. More importantly, this company… [is a] much better operator than Hormel.”

Tyson Foods, Inc. (NYSE:TSN) produces meat and prepared food products, including beef, pork, chicken, and ready-to-eat meals.

While we acknowledge the potential of TSN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.