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This S&P 500 Stock Impresses, Bucks the Downward Market Trend

Last Updated September 23, 2020 12:52 PM
Gerelyn Terzo
Last Updated September 23, 2020 12:52 PM

The stock market is reeling, with the S&P 500 down nearly 3 percent in a sharp sell-off. The broader stock market index is suffering one of its worst days of the year, but if you look hard enough, some stocks are managing to buck the otherwise downward trend. Tyson Foods is among the stocks trading decidedly in the green today even as the threat of a seemingly unending trade war takes its toll on most stocks. Meanwhile, the S&P 500 has shed roughly 6 percent over the last half-a-dozen trading sessions.

Tyson Is Up Nearly 60 Percent Year-to-Date

With all of the hype surrounding Beyond Meat, you might think that Tyson Foods could easily be forgotten. But the stock is up more than 6 percent today even as most of its peers in the S&P 500 are sliding lower. Tyson provided a solid full-year earnings outlook, and investors, who are are hyper-focused on fundamentals these days, were quick to reward it. Wall Street analysts suggest the stock has more runway for gains :

“We continue to see TSN as an attractive way to play the likely increased global demand for animal-based protein, considering the impact of African Swine Fever (ASF) in China and other Southeast Asian markets.”

The stock is on fire despite a reported investigation into the company by the Department of Justice for alleged price-fixing. Tyson shares are currently hovering near their 52-week high and have advanced approximately 60 percent year-to-date. Investors clearly chose to focus on the silver lining and aren’t concerned about the DOJ probe.

tyson foods chart
Tyson Foods is up 60 percent year-to-date.| Source: Yahoo Finance

Tyson vs. Beyond Meat vs. the S&P 500

Tyson Foods is giving some competition to recent IPO Beyond Meat, with plans to launch a pea and beef protein burger blend. Incidentally, Tyson used to be a backer of its latest rival , and so it is no stranger to fake meat burgers. The fact that Tyson is less of a niche play than Beyond Meat stands to work in its favor, especially if the whole meat alternative thing doesn’t work out as planned.

Beyond Meat’s stock has more than doubled year-to-date. Both Tyson and Beyond Meat are crushing the S&P 500 in 2019, with the broader market index trimming its gains to approximately 13 percent for the year so far.