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If You Invested $1000 in Tyson Foods a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Tyson Foods (TSN - Free Report) ten years ago? It may not have been easy to hold on to TSN for all that time, but if you did, how much would your investment be worth today?

Tyson Foods' Business In-Depth

With that in mind, let's take a look at Tyson Foods' main business drivers.

Headquartered in Arkansas, Tyson Foods Inc. was founded in 1935. It is the biggest U.S. chicken company and produces, distributes and markets chicken, beef, pork as well as prepared foods. Its products are marketed and sold primarily by sales staff to grocery retailers, grocery wholesalers, meat distributors, military commissaries, industrial food processing companies, chain restaurants, international export companies and domestic distributors.

Chicken (30.6% of FY20 Sales): The operations of this segment comprise raising and processing live chickens into fresh, frozen and value-added chicken products, as well as sales from allied products.

Beef (36.5% of FY20 Sales): This segment’s operations include processing cattle and preparing dressed beef carcasses into meat cuts and case-ready products. The revenues from this segment also come from sales of allied products such as hides and variety meats. Allied products are marketed to manufacturers of pharmaceuticals and technical products.

Pork (12% of FY20 Sales): This segment’s operations comprise processing market hogs and preparing pork carcasses into meat products.

Prepared Foods (19.8% of FY20 Sales): This segment’s operations include manufacturing frozen and refrigerated food products, like pepperoni, bacon, pizza toppings, pizza crusts, tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes and processed meats.

International/Other (4% of FY20 Sales): The segment includes foreign operations in Australia, China, South Korea, Malaysia, Mexico, the Netherlands, Thailand and the United Kingdom. Also, it includes third-party merger, integration costs and corporate overhead related to Tyson New Ventures, LLC.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Tyson Foods ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in March 2011 would be worth $3,801.72, or a gain of 280.17%, as of March 26, 2021, and this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 197.57% and the price of gold went up 16.17% over the same time frame.

Analysts are forecasting more upside for TSN too.

Shares of Tyson Foods have outperformed the industry in the past six months. The company’s retail channel has been gaining from higher at-home consumption. Tyson Foods’ e-commerce channel has also been performing well amid consumers rising inclination toward digital transactions. Apart from these, the company is benefiting from brand strength and robust geographical reach. Also, it is keen on enhancing operational efficiencies. However, the company continues to face hurdles related to COVID-19 pandemic, which has been a drag on its sales volumes. During the first quarter of fiscal 2021, weak sales volumes across most segments weighed on the company’s top line, which not only declined year on year but also missed the Zacks Consensus Estimate. Moreover, incremental expenses associated with the pandemic put pressure on results.

The stock has jumped 10.31% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2021; the consensus estimate has moved up as well.


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