It's been a rough 12 months for Tyson Foods (NYSE: TSN) shareholders. The stock's down nearly 40% since last February's high, once again touching a new 52-week low just last week. Steep inflation and slumping demand are taking a slow but persistent toll on the meat giant's bottom line. Last quarter's earnings not only fell short of estimates, but fell in a big way compared to its income from the comparable period a year earlier. Investors are understandably spooked.
As Warren Buffett's sage investing advice instructs us, though, we should be greedy when others are fearful. Tyson is a buy here while it's down, as the foreseeable future looks much brighter than the recent past.
CEO Donnie King pulled no punches during the company's recent Q1 earnings call , explaining that "we got hit in the mouth" during the period in question due to high operating and input costs that weren't able to be passed along to consumers . Sales were up a little over 2% year over year, but the 12% uptick in cost of sales cut Tyson's operating income to a third of where it was in the first fiscal quarter of the previous year.
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Tyson Foods Stock Is Down 40% From Its High. Time to Buy?