Tyson Foods, Inc. (AMGN) is a food product company operating in five continued segments: Chicken, Beef, Pork, Prepared Foods, and International. The stock is currently trading around $44.61 at the upper end of its 52 week range of $36.12-$45.10. The stock has been out performing the market this year rallying 11.27% year to date. TSN is scheduled to report earnings on Monday before the opening bell, and the stock is down $0.23 or 0.52% on the session ahead of the close.
Over the past 8 quarters TSN has rallied on earnings day 6 times with an average move of 4.7%. The stock appears very bullish on a chart going into the release having traded above the Ichimoku Cloud since mid-April on the daily bars. Investors are mostly watching how company’s profits are effected after a bird flu wiped out millions of chickens. strong momentum in most business segments drove sales and helped post modest results in the past few quarters and is expected to continue this trend. Corn prices are at a record low helping with margins of the company. With the stock trading way above the cloud, great earnings history and overly bearish investors it is hard to justify anything but a long position in TSN.
The options market is currently implying a move of around $2.50 or 5.6% in TSN by August 21st giving us targets of $42.11 and $47.11.
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