In this file:
· Sanderson Farms and Tyson Foods upgraded as coronavirus-related demand sends meat 'flying off the shelves'
· Sanderson Farms Earns IBD Rating Upgrade
· Tyson Foods: My First Strong Buy Recommendation
Sanderson Farms and Tyson Foods upgraded as coronavirus-related demand sends meat 'flying off the shelves'
By Tonya Garcia, MarketWatch
March 20, 2020
Sanderson Farms Inc. and Tyson Foods Inc. were both upgraded to overweight from neutral at JPMorgan as coronavirus-related demand sends meat "flying off the shelves" at grocers.
Analysts think the demand is offsetting foodservice weakness. "In addition, because meat is a perishable product (and given limited freezer space in homes), the reversal of today's pantry-loading benefits should be relatively muted," analysts said.
Channel checks in New York and California show that chicken was hard to find. Analysts think these companies are shifting merchandise from foodservice to grocers for consumers...
Sanderson Farms Earns IBD Rating Upgrade
Investor's Business Daily
On Friday, Sanderson Farms (SAFM) received a positive adjustment to its Relative Strength (RS) Rating, from 66 to 79.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique rating measures price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
History shows that the stocks that go on to make the biggest gains often have an RS Rating of over 80 as they launch their biggest runs. See if Sanderson Farms can continue to rebound and hit that benchmark.
While Sanderson Farms is not near a proper buying range right now, see if it manages to form and break out from a proper chart pattern...
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Tyson Foods: My First Strong Buy Recommendation
About: Tyson Foods, Inc. (TSN)
Chuck Walston, Seeking Alpha
Mar. 19, 2020
o New trade agreements provide Tyson with access to larger markets.
o Company initiatives should fuel growth.
o A firm financial foundation, a well-funded dividend, and a low valuation all make Tyson a stellar investment.
In the span of less than six weeks,Tyson Foods' (TSN) yield jumped from 2% to roughly 3.5%. Of course, that isn't from a dividend increase. The surge resulted from the stock plummeting. In the last month the S&P dropped 32% while Tyson shares fell 46%. Unless there is a fundamental flaw with the company, I see these developments as a positive for potential investors.
As the citizens of developing nations move into the middle class, demand for protein rich foods increases. This is occurring during a time in which a quarter of the world's domestic pigs perished due to African swine fever (ASF) in one year.
Tyson is moving to expand into foreign markets to meet the increased demand. The company also has a well-funded dividend that grew more than ten-fold in less than a decade.
The Developing Economies Crave Protein
It is a well-established fact that as countries become richer, their citizens eat more protein. More specifically, they consume more chickens, pigs and cattle. The map below testifies to that trend…
o World: 77g/person/day
o Developed countries: 103g/person/day
o Developing World: 70g/person/day
o Sub-Saharan Africa: 55g/person/day
Tyson cited research stating 98% of growth in demand for the company's products will occur outside the US over the next five years. The company also estimates that 5% of global pork production was lost due to ASF.
Pork is a food staple in China as well as in much of east Asia and the Pacific. Seventy percent of the meat consumed in China is pork, and the cost of pork in that nation has increased by 70%. Unfortunately for Chinese ham lovers, half of the pigs in that country were lost due to ASF last year alone. When one considers nearly half of the hogs on the globe once called China home, that represents a substantial blow to China's domestic protein sources.
There are those who believe ASF will remain endemic to east Asia and eastern Europe for years. It should be noted that there is no cure or inoculation for the disease. When a pig is infected, the protocol is to cull the entire herd. Despite these draconian measures, ASF is present in at least 50 countries.
Imports of pork to China have increased by 44% while beef imports rose by 50% during the first nine months of 2019. In Q1 2020, Tyson's pork exports increased 600% YoY.
Developing Economies And ASF Could Drive Growth For The Foreseeable Future ...
An Initiative That Should Drive Growth ...
The Fried Chicken Sandwich Wars Are A Secondary Source Of Growth ...
Tyson Stock Was Trending Down Before COVID -19 ...
My Perspective ...
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