Zacks Industry Outlook Highlights Tyson Foods, Pilgrim's Pride and Beyond Meat

For Immediate ReleaseChicago, IL – March 14, 2025 – Today, Zacks Equity Research discusses Tyson Foods, Inc. TSN, Pilgrim's Pride Corp. PPC and Beyond Meat, Inc. BYND.Industry: Meat ProductsLink: https://www.zacks.com/commentary/2429472/3-meat-stocks-worth-watching-on-robust-industry-opportunitiesThe increasing consumer demand for protein-rich foods, fueled by a growing focus on health and wellness, is driving growth in the Zacks Food – Meat Products industry. To stay competitive, companies in this sector are expanding their product offerings, enhancing production capabilities, and investing in plant-based meat alternatives.Despite challenges, such as elevated input costs and higher operational expenses, players like Tyson Foods, Inc., Pilgrim's Pride Corp. and Beyond Meat, Inc. are well-positioned for sustained growth. Their strategic initiatives and adaptability to evolving consumer preferences continue to strengthen their market presence.About the IndustryThe Zacks Food – Meat Products industry comprises companies that manufacture, process, market, distribute and sell a wide range of meat products like chicken, pork, beef, prepared food and plant-based meats. Some companies also offer poultry and turkey products, alongside providing nutritional food products and supplements, desserts and drink mixes and industrial gelatin products.Most companies offer their products to retail and foodservice customers, while some cater to deli and commercial operators, including grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, industrial food processing companies, chain restaurants, international export companies, school cafeterias and hospitals, among others. Some products offered include frozen whole chicken, primary pork cuts, salads, sandwiches and meatballs.Major Trends Shaping the Future of the Meat Food IndustryIncreased Protein Demand & Plant-Based Alternatives: The growing popularity of high-protein diets is fueling significant growth for meat companies, pushing them to constantly innovate their product offerings. This shift is largely driven by increased health consciousness, particularly among fitness enthusiasts following high-protein regimens like the keto diet.At the same time, the demand for plant-based meat alternatives is gaining traction as more consumers opt for healthier, fresher choices over conventional meat products. These plant-based alternatives are favored for their minimal use of artificial ingredients and additives, making them a more wholesome option. Industry experts believe that plant-based protein could significantly disrupt the traditional meat industry, positioning itself as a formidable contender in the broader protein market.Strategic Expansions: Meat companies are boosting their market presence by diversifying product lines and implementing strategic growth strategies, including mergers, acquisitions, and capacity expansions. To improve production efficiency, many businesses are investing in new manufacturing facilities, upgrading current plants, and forming partnerships with co-manufacturers. In addition, several companies are embracing automation and advanced technologies to drive digital transformation and optimize operations. A number of meat industry players are also focusing on expanding into international markets, where they are witnessing favorable results and strong growth opportunities.Cost-Related Challenges: Elevated input costs continue to pose significant challenges for meat producers. Escalating prices for feed, raw materials, transportation and labor have driven up production expenses. Persistent inflationary pressures, combined with higher operational costs, remain a headwind to maintaining healthy profit margins.Zacks Industry Rank Indicates Robust ProspectsThe Zacks Food – Meat Products industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #10, which places it in the top 4% of more than 250 Zacks industries.The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.The industry's positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group's earnings growth potential.Since the beginning of January 2025, the industry's consensus estimate for current financial year earnings has increased 0.4%. Given the industry's solid prospects, we present a few stocks that you may want to consider for your portfolio. However, before that, it's worth taking a look at the industry's performance and current valuation.Industry vs. Broader MarketThe Zacks Food – Meat Products industry has underperformed the broader Zacks Consumer Staples sector and the S&P 500 over the past year.The industry has declined 7.9% over this period against the broader sector's growth of 2.6%. Meanwhile, the S&P 500 has returned 8.9%.Industry's Current ValuationOn the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing Consumer Staple stocks, the industry is currently trading at 13.10X compared with the S&P 500's 20.48X and the sector's 17.68X.Over the past five years, the industry has traded as high as 21.76X and as low as 12.24X, with the median being 16.62X.3 Meat Food Stocks to Keep a Close Eye OnPilgrim's Pride: The Zacks Rank #1 (Strong Buy) company produces, processes, markets and distributes fresh, frozen, and value-added chicken and pork products. Pilgrim's Pride is driving growth by diversifying its portfolio, offering branded products, and building strong customer partnerships.The company's strong market position is reinforced by high demand in key sectors, especially food service. Ongoing investments in capacity expansion and innovative technologies will enable Pilgrim's Pride to meet changing consumer demands. By leveraging cost management strategies, automation, and operational efficiencies, the company continues to boost its profitability. You can seethe complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for PPC's current fiscal year earnings per share (EPS) has risen from $5.13 to $5.28 over the past 30 days. Pilgrim's Pride has a trailing four-quarter earnings surprise of 25.7%, on average. Shares of the company have jumped 51.4% over the past year.Tyson Foods: This Zacks Rank #2 (Buy) company remains a powerhouse in the protein segment, offering a wide range of chicken, beef and pork products. Tyson Foods' diversified multi-protein portfolio allows the company to navigate industry cycles while capitalizing on rising consumer demand for high-protein diets.With iconic brands like Tyson, Jimmy Dean and Hillshire Farm, the company benefits from strong brand loyalty and household penetration opportunities. Tyson Foods is also leveraging digital advancements and AI-driven solutions to enhance supply-chain efficiency and consumer engagement. With a resilient business model and a multi-channel strategy, TSN remains well-positioned for long-term growth amid an evolving protein landscape.The Zacks Consensus Estimate for TSN's current fiscal year EPS has risen from $3.80 to $3.83 over the past 30 days. Tyson Foods has a trailing four-quarter earnings surprise of roughly 52%, on average. Shares of TSN have gained 7.3% in the past year.Beyond Meat: Elevated consumer demand for healthier, sustainable and ethically produced foods has been a key driver for this Zacks Rank #2 company. As a producer, marketer and seller of plant-based meat substitutes, Beyond Meat benefits from its robust product lineup, largely fueled by its emphasis on innovation. Along with expanding its product offerings, BYND is improving efficiency by consolidating production and investing in automation, which could boost margins.With a fast-growing market and a broadened product portfolio, Beyond Meat appears well-positioned for future success. The Zacks Consensus Estimate for BYND's loss per share for the current fiscal year has narrowed from $2.66 to $1.58 over the past 30 days. Shares of BYND have plunged 59.6% in the past year.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tyson Foods, Inc. (TSN): Free Stock Analysis Report Pilgrim's Pride Corporation (PPC): Free Stock Analysis Report Beyond Meat, Inc. (BYND): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks