Hold Tyson Foods as it indicates more price stability

Tyson Foods Inc. (NYSE:TSN) is trading lower. The price is at a PE of 7.43. Though the valuation is declining, this analysis shows that the stock is closer to finding support. We recommend holding the stock.

Tyson Foods has a 52-week low of $69 and a high of $100. This shows that the price is highly stable. As other stocks in the sector lost close to 10% this week, Tyson Foods lost 2%. This is because the stock has been declining over the last two months and may be close to a bottom.

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Our analysis projects that Tyson Foods is likely to set a new consolidation level below $82 but above $70. Rationally, this is due to expectations of how the bear market will impact the stock. The analysis, therefore, finds it prudent for long-term investors to hold the stock.

Tyson Foods is stable after two months of losing

Technical analysis shows that Tyson Foods is characterized by normal volatility in the weekly prices. The MACD is at 0.09 with divergence from the signal being -1.44. The RSI is at 41 while the 14-day SMA line is at 52. The stock can still be expected to shed a little more due to the bear market. However, the price will remain largely stable. The stock is therefore a recommended hold.

Summary

Tyson Foods is trading close to the support level. The stock’s price stability makes it attractive to hold during a bear market. This analysis projects that the stock may not decline below $70 and has a high upside potential.

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