Equity Research and Investment Analysis

Two weeks ago, shares were sent downwards because of an analysts call that demand for chicken will likely fall in the next quarter. The market's response to yesterday's positive quarter has thus far been a little bit tepid, as shares are up only 2% in morning trading.

Sanderson Foods recently received a Buy rating as coverage was initiated at KeyBanc. We have to disagree, for a company that recently swung to a loss and that is not growing, we think the shares are just too expensive.

Tyson Foods missed their third quarter numbers this morning and the stock is selling off today. However, the shares are beginning to look compelling. Further retreat in the consumer staples segment and continued weakness in TSN shares would make it an attractive investment according to our methodology.