Beat-and-Raise Has Tyson Foods Stock Climbing

The meat company has fared well with restaurants and hotels opening back up

Assistant Editor
Aug 9, 2021 at 9:33 AM
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The shares of Tyson Foods, Inc (NYSE:TSN) are up 4.5% at $74.35 ahead of the opening bell, after the meat processing company's impressive fiscal third-quarter top- and bottom-line beats. Tyson Foods reported adjusted earnings of $2.70 per share, higher than the $1.62 per share anticipated by analysts, as well as estimate-beating revenue. The firm got a boost from strong demand, particularly for its beef products, amid the reopening of many restaurants and hotels, prompting Tyson to raise its 2021 guidance.

On the charts, the equity has moved lower since its May 14 annual high of $81.79, but remains up 10.4% year-to-date. The 3.5% quarterly haircut has found support at the shares' 200-day moving average, a trendline that has been breached on a closing basis only once since November.

There's been no movement today, but on the analyst front, upgrades could be in store that could push the equity higher. Of the seven brokerages in coverage, three maintain a tepid "hold" rating.  

The options pits, meanwhile, were bearish ahead of today's event. Tyson Foods stock's 50-day put/call volume ratio of 0.60 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 74th percentile of its annual range. While this indicates calls outnumber put son an absolute basis, the high percentile suggests a healthier-than-usual appetite for puts of late. 

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