3 Meat Stocks to Watch as Strong Protein Demand Drives the Industry

Strong consumer demand continues to support companies in the Zacks Food – Meat Products industry, with protein remaining a staple in diets and shoppers increasingly gravitating toward leaner cuts, premium offerings and cleaner-label options. Innovation is also helping leading players stay relevant, as companies introduce convenient, value-added formats and expand into specialty and hybrid protein products that align with evolving health and lifestyle trends.

However, the industry still faces headwinds from tight livestock supplies and rising feed, labor and transportation costs, which are pressuring margins. Nonetheless, companies like Tyson Foods, Inc. TSN, Pilgrim’s Pride Corporation PPC and Beyond Meat, Inc. BYND remain well-positioned through product innovation and portfolio adaptability.

About the Industry

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, 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.

Major Trends Shaping the Future of the Meat Food Industry

Sustained Consumer Demand and Premiumization: Consumers continue to prioritize protein as a core part of their diets, keeping demand for traditional meat products resilient even amid broader food cost pressures. Protein-rich foods remain central to everyday meals, and lean meats such as poultry have seen steady demand due to perceptions of better health and versatility in home cooking. This solid base demand has reinforced the role of meat as a staple category in grocery shopping and helped processors maintain shelf space priority. There is also growing consumer interest in premium and specialty meat offerings, including organic, grass-fed and antibiotic-free options, which allows producers to capture price premiums and differentiate their products in crowded retail aisles. This premiumization trend responds to evolving consumer preferences for quality, animal welfare and perceived health benefits, contributing to stronger profitability for brands that align with these preferences.

Product Innovation and Market Adaptation: Innovation across the broader meat product landscape is expanding the category’s appeal and addressing diversified consumer needs. Beyond traditional cuts, producers and retailers are introducing clean-label, convenience-focused products, and evolving formats such as pre-marinated proteins and value-added ready-to-cook items that appeal to time-pressed consumers. Technological improvements in processing and safety are also enhancing product quality and consistency, attracting shoppers who seek both convenience and transparency in ingredient lists. Additionally, segments adjacent to conventional meat, including plant-based alternatives and hybrid protein products, are growing in visibility, prompting traditional meat brands to refine their portfolios and meet consumers where they are. This willingness to innovate bolsters the relevance of meat in shifting retail environments and supports broader category penetration across age and lifestyle groups.

Supply Pressures and Rising Input Costs: Structural cost pressures represent a significant challenge for the meat food industry. Livestock supplies (especially beef cattle) remain constrained, leading to ongoing price pressures that outpace general food inflation and squeeze both processors and consumers. Drought conditions, higher feed and labor costs, and elevated transportation expenses have tightened beef supply and driven prices to historically high levels in many markets. These cost dynamics make it difficult for producers to absorb expenses without passing them on to retailers and ultimately shoppers, dampening consumption growth for some segments. Persistent volatility in input costs and complex supply-chain dynamics further limit margin expansion, particularly for businesses that are not diversified across proteins or value-added categories.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Food – Meat Products industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #99, which places it in the top 41% 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 solid 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 top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Given the industry’s strong 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.

Industry vs. Broader Market

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 40.5% over this period compared with the broader sector’s drop of 5.5% and the S&P 500’s rise of 15.2%.

One-Year Price Performance

Industry's Current Valuation

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 12.01X compared with the S&P 500’s 23.44X and the sector’s 16.07X.

Over the past five years, the industry has traded as high as 21.75X and as low as 11.95X, with the median being 15.85X, as the chart below shows.

Price-to-Earnings Ratio (Past Five Years)

3 Meat Food Stocks to Keep a Close Eye On

Pilgrim’s Pride:  The Zacks Rank #2 (Buy) company stands to benefit from the strong market trend toward poultry consumption. A focus on chicken and pork — categories with generally more stable supply dynamics — helps insulate the company from some of the headwinds affecting beef-centric competitors. Robust foodservice demand, strategic expansion in case-ready and prepared segments, and investments in automation and brand differentiation are contributing to product mix improvement and broader customer reach. As Pilgrim’s Pride continues to leverage efficiency gains and optimize production, it remains well-positioned to capture share in both retail and foodservice channels.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.   

The Zacks Consensus Estimate for PPC’s current fiscal-year earnings per share (EPS) has moved up from $5.21 to $5.45 in the last 60 days. Pilgrim’s Pride has a trailing four-quarter earnings surprise of 10.4%, on average. Shares of PPC have declined 22.9% in the past year.

Price and Consensus: PPC

Beyond Meat: The company occupies a unique place in the protein landscape as a leading plant-based alternative. Rising interest in healthier, sustainable food choices and innovation in product formulation provide a supportive backdrop for potential growth. This Zacks Rank #2 company’s efforts to streamline operations, enhance distribution and sharpen product appeal are central to its growth strategy amid headwinds, including softer consumer demand for highly processed alternatives, pricing disadvantages relative to conventional meat and intense competition. 

The Zacks Consensus Estimate for BYND’s bottom line for the current fiscal year has improved from a loss of $1.91 to a loss of $1.12 per share over the past 30 days. Shares of Beyond Meat have plunged 68.5% in the past year.

Price and Consensus: BYND

Tyson Foods: The Zacks Rank #3 (Hold) company’s broad protein portfolio — spanning chicken, beef, pork and prepared foods — positions it well to benefit from sustained demand for protein and everyday meals. Continued strength in chicken demand has been a stabilizing force, helping offset persistent headwinds in beef due to tight cattle supplies and elevated input costs. TSN’s focus on operational excellence, efficiency initiatives and product quality enhancements supports margin resilience and long-term competitiveness. Additionally, adjustments toward cleaner ingredient profiles align with consumer preferences.

The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year EPS has moved up by a penny to $3.86 in the last 30 days. Tyson Foods has a trailing four-quarter earnings surprise of 28.6%, on average. Shares of TSN have declined 5.8% in the past year.

Price and Consensus: TSN

 

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Tyson Foods, Inc. (TSN): Free Stock Analysis Report
 
Pilgrim's Pride Corporation (PPC): Free Stock Analysis Report
 
Beyond Meat, Inc. (BYND): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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