Tyson Foods Stock Set to Rise on Earnings Beat

Options traders have been leaning bearish toward TSN

Managing Editor
Aug 6, 2018 at 9:23 AM
facebook X logo linkedin

Shares of Tyson Foods, Inc. (NYSE:TSN) are up 3.4% at $59.70 in electronic trading after the company early this morning reported fiscal third-quarter earnings that topped estimates, even as sales fell just short of expectations at $10.05 billion on falling pork and beef prices.

The food processing stock has been on a steep downtrend since hitting its early-December record peak of $84.65, most recently suffering a bear gap and hitting a fresh annual low in late July after lowering its full-year profit forecast following an increase in tariff pressures. TSN is down 28% year-to-date, and is now trading well below resistance at its 20-day moving average.

Looking toward options, traders have been leaning bearish of late. This is per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which shows Tyson Foods stock with a 10-day put/call volume ratio of 1.62, ranking in the 77th annual percentile. This indicates that during the past two weeks, TSN puts have been purchased over calls at a faster-than-usual clip.

On the flip side, analyst sentiment is more optimistic toward the food name. Of the nine brokerage firms following TSN, six currently sport "strong buy" recommendations. Plus, the stock's average 12-month price-target of $73.20 stands at a nearly 27% premium to Friday's close.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI