Tyson Food is a consumer non-cyclical stock which has been left out of the "Trump" rally.
Fundamentally appealing, defensive growth story (ROE 18.32%, 5yr rev growth 2.86%).
The consensus has a BUY recommendation with 13% upside.
Valuation is appealing, below market (P/E 13.9x).
TECHNICALLY INTERESTING FORMATION TO TRADE
- Failed twice to break the historical high
- Consolidated significantly on the back of disappointing
- Has formed a base off the 50% of the major up-move initiated last year (see long term chart below)
- Has broken out off a rounding top once
- Is attempting to breakout again off another rounding top
MARKET TIMING COMPELLING FOR DEFENSIVE INVESTMENT
The current market context provides uncertainty
- Index up to historical high
- At the same time, is up from low levels
- Rate rises knocking at the door
- Speed of future rate rises yet unknown
==> Want to stay exposed to equities while managing risk
==> Buy defensive sectors/stocks with a clear fundamental and technical story
PLAIN VANILLA LONG INVESTMENT
Buy at the current level
TARGETS 64.37 / 72.00 / 77.00
STOP LOSSES 56.00 / 54.50
Main risk: Unfilled gap taking us to 54.00