It’s November, inflation is still high, and there’s a turkey shortage in the U.S. Still, there’s a lot to be thankful for as Thanksgiving approaches this year, as profit-hungry investors can still find tasty treats in the financial markets. Perhaps you’ve never thought about buying turkey producers in particular. Today, however, you’re encouraged to keep an open mind as several businesses in this niche category happen to offer good value and regular dividend distributions. So, get ready to talk turkey about three Thanksgiving picks with delicious potential.
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Tyson Foods (NYSE: TSN)
Arkansas-headquartered Tyson Foods is the meat king of America’s frozen foods aisles. If you consumed a prepared/processed beef, pork, chicken, or turkey product from a grocery store, there’s a pretty good chance that Tyson Foods had a hand in its production.
Tyson Foods just wrapped up its Fiscal 2022, and to be honest, the company’s pork and beef sales were anemic during the past 12 months. Still, Tyson CEO Donnie King insists that people “are willing to pay for food to eat at home,” Reuters reports.
Besides, FY2022 wasn’t all bad news for Tyson Foods. The meat specialist managed to eke out a 7% year-over-year improvement in GAAP-measured EPS, along with a moderate increase in sales. That’s fairly impressive during a time of “sticky” inflation and a recession threat. So, feel free to celebrate the little victories – and take note of Tyson Foods’ rock-bottom trailing 12-month P/E ratio of 7.2x, along with the company’s generous 2.9% forward annual dividend yield.
What is the Price Target for Tyson Foods Stock?
TSN has a Hold consensus rating based on one Buy, four Holds, and one Sell rating assigned in the past three months. The average Tyson Foods stock price target of $74.20 implies % upside potential.
Seaboard (NYSE: SEB)
Kansas-based Seaboard is a highly diversified agribusiness and transportation company. Turkey enthusiasts, however, might recognize Seaboard as a part-owner of Butterball.
SEB stock is expensive and cheap at the same time. How so? The share price is close to $4,000, yet Seaboard’s P/E ratio is quite reasonable at just 9.6x. If you’re not in the mood to cough up nearly $4,000 for a single share, you might want to look into brokers that offer fractional shares; there may also be ways to invest in Seaboard indirectly through options.
Financially speaking, Seaboard remains on solid ground. For the three months ended October 1, 2022, Seaboard reported a sizable year-over-year improvement in net sales, operating income, and EPS. Also, during that time frame, and despite macroeconomic challenges, the company maintained its per-share dividend of $2.25. Hence, if you’re looking for a fairly-valued turkey producer with interests in plenty of other industries, Seaboard is right up your alley.
Regarding price targets, SEB stock currently has no analyst coverage and, therefore, doesn’t have any price targets.
Kraft Heinz (NASDAQ: KHC)
Pennsylvania’s Kraft Heinz is known for its portfolio of dozens of famous American packaged-food brands. Along with condiment and cheese products, Kraft Heinz offers turkey and other meat-based edibles.
You might recognize KHC as a Warren Buffett stock, and income-focused investors will certainly be tempted by Kraft Heinz’s 4.2% forward annual dividend yield. From a financial perspective, Kraft Heinz demonstrated resilience in 2022’s third quarter with a 2.9% year-over-year increase in net sales. Furthermore, the company beat analysts’ Q3 expectations for both revenue and EPS.
Granted, Kraft Heinz boosted its top and bottom lines with a 15.4% product-price increase. It’s unfortunate that the company has to pass higher product costs on to consumers. Yet, people are evidently willing to pay for Kraft Heinz’s convenient packaged-food fare – and that’s a confidence booster for anyone invested in KHC stock.
What is the Price Target for Kraft Heinz Stock?
KHC has a Moderate Buy consensus rating based on four Buys and six Hold ratings assigned in the past three months. The average Kraft Heinz stock price target of $41.30 implies 7.7% upside potential.
Conclusion: Try a Small Serving of These Turkey Stocks
As we’ve discovered, the bullish argument for TSN, SEB, and KHC shares is stronger than some folks might have expected. Yet, the idea here isn’t to stuff yourself with oversized share positions. Instead, consider a moderate stake in one, two, or even all three of these intriguing turkey-day picks. Thanksgiving will come and go, but good value and generous dividends should keep investors satisfied all year long.
