Zacks Industry Outlook Features Tyson Foods, Hormel Foods, Smithfield Foods, and Beyond Meat

Press Announcement

Chicago, IL – February 25, 2026 – Zacks Equity Research has released an analysis focusing on several key players in the meat and alternative protein sector, including Tyson Foods (TSN), Hormel Foods Corp. (HRL), Smithfield Foods (SFD), and Beyond Meat (BYND).

Sector Overview: Meat & Meat Alternatives

The Food – Meat Products industry is currently contending with significant challenges, including rising input costs and ongoing inflation. Consumer caution has led to reduced purchase volumes, while uncertainties in trade and export markets have added further instability to the business landscape.

Despite these obstacles, companies such as Tyson Foods, Hormel Foods, Smithfield Foods, and Beyond Meat are responding with diversified product lines, efficiency improvements, and innovation. Consistent demand for protein and growing interest in plant-based options are creating select growth opportunities within the sector.

Industry Profile

The Food – Meat Products sector includes businesses involved in producing, processing, marketing, and distributing a variety of meat items, such as chicken, pork, beef, prepared foods, and plant-based alternatives. Some companies also offer poultry, turkey, nutritional supplements, desserts, drink mixes, and industrial gelatin.

These products are distributed to a wide range of customers, including retail and foodservice outlets, grocery stores, wholesalers, meat distributors, warehouse clubs, industrial food processors, restaurant chains, exporters, schools, and hospitals. Offerings range from frozen chicken and pork cuts to salads, sandwiches, and meatballs.

Key Trends Impacting the Meat Industry

• Cost Pressures: Meat producers are grappling with higher expenses for feed, livestock, labor, and transportation, which is squeezing profit margins. Inflation and increased living costs are prompting consumers to be more selective and purchase smaller quantities, impacting sales volumes even for typically affordable proteins like chicken.
• Export Headwinds: International markets remain challenging due to shifting trade policies, biosecurity risks, and logistical issues. Changes in global demand, currency fluctuations, and geopolitical events can influence export volumes and pricing. The U.S.-China trade relationship and heightened competition in the global protein market add further uncertainty.
• Rising Protein Demand & Growth of Plant-Based Options: Interest in high-protein diets continues to support demand for meat products, especially among health-focused consumers. At the same time, plant-based proteins are gaining popularity, prompting companies to innovate and diversify their offerings to meet evolving consumer preferences.

While traditional meat remains the primary choice, alternative proteins are steadily increasing their market share, driving innovation and competition across the industry.

Industry Outlook: Zacks Ranking

The Food – Meat Products sector is part of the broader Consumer Staples group and currently holds a Zacks Industry Rank of #203, placing it in the lowest 16% of over 243 industries tracked by Zacks.

This ranking, based on the average Zacks Rank of all member stocks, signals muted short-term prospects. Historically, industries in the top half of Zacks’ rankings outperform those in the bottom half by more than two to one.

The sector’s position in the lower half is due to a weak earnings outlook, with analysts revising estimates downward. Despite this, there are select stocks that may offer potential, which are discussed below. Before diving into those, let's review the sector’s recent performance and valuation.

Performance Compared to the Broader Market

Over the past year, the Food – Meat Products industry has lagged behind both the overall Consumer Staples sector and the S&P 500. The industry saw a 23.5% decline, while the broader sector grew by 6.9% and the S&P 500 advanced by 18.2%.

Current Valuation Metrics

Based on forward 12-month price-to-earnings (P/E) ratios, a common valuation measure for Consumer Staples, the industry is trading at 13.32x, compared to 22.69x for the S&P 500 and 18.2x for the sector. Over the past five years, the industry’s P/E has ranged from 11.95x to 21.75x, with a median of 15.26x.

Four Meat Industry Stocks to Watch

• Tyson Foods (TSN): Ranked #3 (Hold) by Zacks, Tyson is a major global protein supplier with a diverse portfolio covering chicken, beef, pork, and prepared foods. Its multi-protein approach helps manage market volatility. Well-known brands like Tyson, Jimmy Dean, and Hillshire Farm bolster its retail presence. The company’s focus on operational efficiency and supply chain improvements supports its competitive edge. Over the past year, Tyson shares have risen 3.5%. The current consensus estimate for annual EPS has slightly decreased from $3.94 to $3.88 in the past month, with an average earnings surprise of 16.5% over the last four quarters.
• Hormel Foods (HRL): Also ranked #3, Hormel maintains a strong presence in both retail and foodservice, with a broad range of branded protein and value-added products. The company invests in innovation and operational improvements, and has expanded through strategic acquisitions. Its annual EPS estimate remains steady at $1.43, but shares have declined 13.9% in the past year, and the company has posted an average negative earnings surprise of 3.3% over the last four quarters.
• Smithfield Foods (SFD): This vertically integrated pork producer manages the entire supply chain, from hog production to packaged meats. Smithfield focuses on optimizing its product mix, strengthening both branded and private-label offerings, and improving efficiency through automation. The EPS estimate for the year is unchanged at $2.39, and shares have surged 18.1% over the past year, with an average earnings surprise of 8.4% in the last four quarters.
• Beyond Meat (BYND): Specializing in plant-based proteins, Beyond Meat targets consumers interested in health and sustainability. The company is working to reduce costs and improve efficiency through production consolidation and automation. The consensus estimate for the current year’s loss is unchanged at $1.12 per share, but shares have dropped 82.1% over the past year.

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Contact Information

• Media Contact: Zacks Investment Research
• Phone: 800-767-3771 ext. 9339

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