27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Tyson Foods, Inc. (NYSE:TSN) reported second-quarter EPS ahead of expectations, reiterated its full-year guidance and provided a favorable 2020 outlook, according to BMO Capital Markets.
The Analyst
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Kenneth Zaslow maintained an Outperform rating on Tyson Foods with an unchanged $90 price target.
The Thesis
Tyson Foods reported its second-quarter EPS of $1.47, backed by solid performance in prepared foods, a decent performance in the chicken segment and a lower tax rate that was partially offset by slightly disappointing beef performance, Zaslow said in a Tuesday note. (See his track record here.)
The food company reiterated its full-year 2019 EPS guidance of $5.75-$6.10, which reflects a lower tax rate and further improvement in prepared foods, the analyst said.
The company’s outlook for 2020 is positive, indicating margins of more than 7% for beef, over 6% for pork and chicken and more than 12% for prepared foods, he said.
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Zaslow quoted the company as saying “there’s upward potential, in some cases,” and “sizable upward potential in some of our segments” from African swine fever.
The analyst named Tyson Foods a “top pick” for 2019 and said the company’s “earnings power, strong cash flow, attractive valuation, and optionality associated with African swine fever create a compelling investment opportunity.”
BMO raised its 2019 EPS estimate to $6, reflecting better margins at prepared foods, and said the company could exceed $6.50 in EPS and $2 billion in cash flow in 2020 from improving fundamentals, acquisitions and the effect of African swine fever on the market.
Price Action
Tyson foods shares were down 0.3% at $83.58 at the time of publication Tuesday.
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27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.