MKC:CC - Tyson: I'm Not Chickening Out Yet

2024-02-06 06:49:14 ET

Summary

• Tyson Foods' fundamental performance has been disappointing, but recent quarterly results exceeded analysts' expectations.
• The condition of the business continues to worsen, but shares are still priced attractively compared to similar firms.
• While caution is warranted, there may still be some additional upside potential for investors in TSN.

Sometimes, when it comes to investing, figuring out what to buy and when to buy is the easy part. It can be equally difficult, or even more difficult sometimes, to know when to cash out. As a rule of thumb, my objective is to get a return that is better than what the general market can get. It's also to be mindful of changes in fundamentals and the extent to which those might be permanent. If the condition of a business starts to worsen and it becomes clear that the worsening is part of a longer trend, it can make sense to sell out, especially if shares go from looking significantly undervalued to being more or less fairly valued....

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