By Peet Serfontein & Khumbulani Kunene
We enter a long position with a target price of $69.00 and a stop-loss of $55.00.
Tyson Foods is one of the largest food and protein companies in the United States (US). The company processes, markets and distributes beef, pork, chicken and prepared food products that are sold to national and regional grocery retailers, regional grocery wholesalers, meat distributors, warehouse club stores, military commissaries, and industrial food processing companies.
The company's scale, extensive distribution network and exposure to multiple protein categories provides meaningful competitive advantages, although profitability remains sensitive to livestock costs, commodity prices, consumer demand, supply conditions and operating expenses.
Technically, the price in an inclining channel pattern presents an attractive buying opportunity (see the black parallel trendlines on the main chart). This pattern presents an attractive potential buying opportunity, particularly as the stock is trading relatively close to the lower boundary and limits further downside.
Strong volume support near the current price also supports a bullish bias (see the insert on the main chart) - this area reflects substantial historical trading activity and strong price acceptance, suggesting that buyers may defend the stock during temporary weakness.
Fading downside price momentum according to the Moving Average Convergence Divergence (MACD) histogram and the recent sideways trajectory of the on-balance volume (OBV) indicator supports the bullish stance.
Share performance
Share Information
| Share Code | TSN |
| Industry | Food, Beverage & Tobacco |
| Market Capital (USD) | 20.66 billion |
| One-Year Total Return | 10.89% |
| Return Year-to-Date | 1.85% |
| Current Price (USD) | 58.74 |
| 52-Week High (USD) | 69.48 |
| 52-Week Low (USD) | 50.56 |
| Financial Year End | September |
| The price remains squeezed above its 200-day simple moving average (SMA), suggesting that the long-term trend supports the bullish case. | |
Consensus Expectations (Bloomberg)
| FY25 | FY26E | FY27E | FY28E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 4.12 | 3.89 | 4.47 | 5.23 |
| Growth (%) | -5.66 | 14.97 | 17.07 | |
| Dividend Per Share (USD) | 3.82 | 2.08 | 2.40 | 2.67 |
| Growth (%) | -45.43 | 15.12 | 11.46 | |
| Forward PE (times) | 15.11 | 13.14 | 11.23 | |
| Forward Dividend Yield (%) | 3.55 | 4.08 | 4.55 | |
| The company is set to deliver strong double-digit earnings growth over the medium term. | ||||
Buy/sell rationale
Technical Analysis
Fundamental view
Update on previous trade ideas
| Share name and position | Entry | Current price | Movement | Comment | Time to exit |
|---|---|---|---|---|---|
| PLTR - (Close position) | 133.72 | 162.66 | +21.6% | Stock has hit our profit target Close the position. | |
| MA - (Close position) | 513.60 | 577.35 | +12.4% | Stock has hit our profit target Close the position. | |
| VMC - Buy (Continue to hold) | 268.94 | 285.10 | +6.0% | The combination of supportive long-term trend dynamics, improving momentum conditions and favourable mean-reversion characteristics remains of interest. Remains just below its 200-day simple moving average (SMA). Fading downside momentum is supportive. Our profit target is maintained at $314.00 with a trailing stop-loss at ~$275.00. | 19 August 2026 |
| SYK - Buy (Continue to hold) | 329.74 | 335.96 | 1.9% | The price at the lower range of an inclining linear regression channel pattern remains of interest. Remains just below its 200-day SMA. Upside momentum is supportive. Our profit target is maintained at $401.00 with a trailing stop-loss at $309.00. | 14 October 2026 |
| DD - Buy (Continue to hold) | 140.77 | 142.93 | +1.5% | The price at the start of wave 5 out of the Elliott wave price theory remains of interest. Testing its 200-day SMA. The start of upside momentum is supportive. Our profit target is maintained at $170.00 with a trailing stop-loss at $134.00. | 7 October 2026 |
