Schaeffer's 43rd Anniversary Stock Picks in 2024

Meat Stock Falls Short After China Suspends Poultry Imports

The equity is down over 32% year-to-date

Digital Content Manager
Jun 22, 2020 at 11:09 AM
facebook X logo linkedin

The shares of Tyson Foods, Inc. (NYSE: TSN) are down 2.8% at $61.40 this morning, after China's customs authority said on Sunday it suspended poultry imports from a plant in Arkansas with a cluster of confirmed coronavirus cases. Though the World Health Organization (WHO) notes that there is no evidence to support the spread of COVID-19 through food, China has stepped up oversight of imported goods after the respiratory disease was linked to a sprawling wholesale market in Beijing.

The equity's efforts to climb out of its mid-March, nearly five-year lows at the $42 level, have mostly stalled. On the charts, TSN's 20-day moving average has acted as both support and resistance over the past year, but now looks to have moved in as a floor. However, gains have been capped by overhead pressure at the $66 mark over the past two weeks. Long term, TSN is down 32.2% year-to-date.

Analysts were evenly split toward the equity coming into today, with four of the eight in coverage sporting a "strong buy" recommendation, while the remaining carried a tepid "hold." Meanwhile, the 12-month consensus target price of $72.72 is a 15% premium to current levels.

The appetite for calls is unusually high in the option pits, however. In the last 10 days, 5.47 calls were bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 90% of readings from the past year, meaning calls are being picked up at a faster-than-usual clip. 


A.I.’s Dirty Little Secret: The Real Power Behind The AI. Boom ✨

Anyone who’s seen the The Matrix movies knows that A.I. needs power.  Lots and lots of power.

If you’ve seen the movie, you also know the grizzly results of the ensuing battle for that power.

Now, Wall Street’s battle for A.I. power won’t go to such extremes. Hopefully?

A.I. needs more power and that means more opportunities for stock traders in the know.

Download your free copy of “The A.I. Revolution: 4 Stocks to Buy Now”!