Three Food Products Stocks That May Offer a Treat
This week, we use AAII’s A+ Investor Stock Grades to provide insight into three food products stocks. With industry revenues projected to reach $1.5 trillion in 2025, should you consider the three stocks of Cal-Maine Foods Inc. (CALM), Pilgrim’s Pride Corp. (PPC) and Tyson Foods Inc. (TSN)?
Food Products Stocks Recent News
The U.S. food products industry is projected to experience steady growth in 2025, driven by evolving consumer preferences and increasing demand for health-conscious and sustainable food options. According to Statista, the U.S. food market of fresh and processed foods is expected to generate approximately $864 billion in 2025, with an annual growth rate of 4.36% from 2025 to 2030. Meanwhile, food prices are forecasted to rise 2.2% in 2025, with food-at-home prices increasing 1.3%.
According to the National Restaurant Association, the restaurant and food service industry is projected to reach $1.5 trillion in sales and employ 15.9 million people by the end of 2025, an addition of approximately 200,000 new jobs. Additionally, 82% of consumers express interest in ordering more delivery, driving increased demand for packaged and ready-to-eat food solutions.
Amid this expansion, companies like Cal-Maine Foods, Pilgrim’s Pride and Tyson Foods may present compelling opportunities for investors looking to capitalize on the industry’s prospects.
Grading Food Products Stocks With AAII’s A+ Stock Grades
When analyzing a company, it is helpful to have an objective framework that allows you to compare companies in the same way. This is why AAII created the A+ Stock Grades, which evaluate companies across five factors that research and real-world investment results indicate to identify market-beating stocks in the long run: value, growth, momentum, earnings estimate revisions (and surprises) and quality.
Using AAII’s A+ Stock Grades, the following table summarizes the attractiveness of three food products stocks — Cal-Maine Foods, Pilgrim’s Pride and Tyson Foods — based on their fundamentals.
AAII’s A+ Stock Grade Summary for Three Food Products Stocks
What the A+ Stock Grades Reveal
Cal-Maine Foods Inc. (CALM) and its subsidiaries specialize in the production, grading, packaging, marketing and distribution of shell eggs and egg products. The company offers both conventional and specialty eggs, including nutritionally enhanced, cage-free, organic, free-range, pasture-raised and brown eggs, under brands such as Eggland’s Best, Land O’ Lakes, Farmhouse Eggs, Sunups, Sunny Meadow and 4Grain. Cal-Maine supplies its products to national and regional grocery chains, club stores, independent supermarkets, food service distributors and egg product consumers across the Southwest, Southeast, Midwest, Northeast and mid-Atlantic regions of the U.S. Founded in 1957, the company is headquartered in Ridgeland, Mississippi.
Cal-Maine Foods has a Value Grade of A, based on its Value Score of 82, which is deep value. Higher scores indicate a more attractive stock for value investors and, thus, a better grade. The Value Grade is the percentile rank of the average of the percentile ranks of the price-to-sales (P/S) ratio, price-earnings (P/E) ratio, price-to-book-value (P/B) ratio, price-to-free-cash-flow (P/FCF) ratio, shareholder yield and the ratio of enterprise value to earnings before interest, taxes, depreciation and amortization (EBITDA).
Cal-Maine Foods has an enterprise-value-to-EBITDA ratio of 3.9, which ranks in the 9th percentile among all U.S.-listed stocks. Its price-earnings ratio is 7.1, which ranks in the 9th percentile and is below the sector median of 23.3. This suggests that Cal-Maine Foods’ stock may be relatively cheap compared to similar companies in its sector.
Cal-Maine Foods has a Momentum Grade of B, based on its Momentum Score of 78. This means that the stock’s momentum is strong in terms of its weighted relative price strength over the last four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters, with the most recent quarterly price change given a weight of 40% and each of the three previous quarters given a weight of 20%. The quarterly ranks are 53, 86, 90 and 55, sequentially from the most recent quarter, with higher ranks signaling stronger price momentum. The weighted four-quarter relative price strength is 5.5%.
Cal-Maine Foods has a Growth Grade of C, which is average. The components of the Growth Composite Score consider a company’s success in growing sales on a year-over-year and long-term annualized basis and its ability to consistently generate positive cash from its core operations. The company has a five-year annualized sales growth rate of 11.3% and has generated positive annual cash from operations in the past five consecutive years.
Pilgrim’s Pride Corp. (PPC) is a leading producer, processor and distributor of fresh, frozen and value-added chicken and pork products for retailers, distributors and food service operators. Its product lineup includes refrigerated whole and cut-up chicken and pork cuts. The company also offers prepared foods, such as fully cooked, ready-to-cook and individually frozen chicken parts, sausages, bacon, prepackaged meats, and sandwich and deli counter meats. Pilgrim’s Pride also provides plant-based protein options, vegetarian foods and desserts. Its exported products include refrigerated and frozen chicken and pork cuts, serving U.S. distributors and global export markets. The company markets its products under brands including Pilgrim’s, Country Pride, Pierce Chicken, O’Kane, Richmond, Fridge Raiders and Denny. The company serves chain restaurants, food processors, broadline distributors, grocery store chains, wholesale clubs and other retail distributors. It operates in the U.S., U.K., Mexico, the Middle East, Asia and continental Europe. Founded in 1946, the company is headquartered in Greeley, Colorado, and operates as a subsidiary of JBS S.A. (JBSAY).
Pilgrim’s Pride has a Quality Grade of A, based on a score of 93, which is very strong. Higher-quality stocks possess traits associated with upside potential and reduced downside risk. The Quality Grade is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit to assets, buyback yield, change in total liabilities to assets, accruals to assets, Z double prime bankruptcy risk (Z) score and F-Score. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
Pilgrim’s Pride ranks strongly in terms of its return on assets and F-Score. It has a return on assets of 10.6% and an F-Score of 7. The F-Score is a number between 0 and 9 that assesses the strength of a company’s financial position. It considers the profitability, leverage, liquidity and operating efficiency of a company. Higher numbers are better.
The weakest component in the stock’s Quality Grade is its gross income to assets of 21.7%, which ranks in the lowest 59th percentile of all stocks.
Pilgrim’s Pride has a Value Grade of B, based on a score of 79, which is good value. The company ranks in the cheapest 13th percentile for its enterprise-value-to-EBITDA ratio and in the cheapest 24th percentile for its price-to-sales ratio. The company has an enterprise-value-to-EBITDA ratio of 5.4 and a price-to-sales ratio of 0.69. A lower price-to-free-cash-flow ratio is also considered better value, and Pilgrim’s Pride has a price-to-free-cash-flow ratio of 8.2, compared to the sector median of 24.0.
The company has a Momentum Grade of A, based on its Momentum Score of 84. This means that the stock’s momentum is very strong in terms of its weighted relative price strength over the last four quarters. The quarterly ranks are 59, 74, 84 and 90, sequentially from the most recent quarter. The weighted four-quarter relative price strength is 8.9%.
Tyson Foods Inc. (TSN) is a global food company operating through four segments: beef, pork, chicken and prepared foods. The company processes cattle, hogs and chickens — fabricating beef and pork cuts, case-ready meats, and fully cooked products — while also raising and supplying poultry breeding stock. Its chicken segment produces fresh, frozen and value-added products, including breaded strips, nuggets, patties and fully cooked chicken parts. In addition, Tyson Foods manufactures and markets frozen and refrigerated foods, such as ready-to-eat sandwiches, bacon, breakfast sausage, hot dogs, tortillas, appetizers, prepared meals and processed meats, under brands like Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright and State Fair. Tyson Foods sells its products to grocery retailers, wholesalers, meat distributors, warehouse clubs, military commissaries, industrial processors, chain restaurants, live markets and international exporters. It also supplies schools, hospitals, convenience stores and other food service providers through independent brokers and trading companies. Founded in 1935, Tyson Foods is headquartered in Springdale, Arkansas.
Tyson Foods has a Quality Grade of B, based on a score of 66, which is strong. The company ranks strongly in terms of its return on assets and F-Score. Its return on assets of 2.8% ranks in the 62nd percentile among all U.S.-listed stocks. Its F-Score of 7 ranks in the 84th percentile.
The company’s Growth Grade is A, which is very strong. Tyson Foods has realized positive annual cash from operations in the past five consecutive years. It also has a five-year annualized sales growth rate of 4.7%.
Earnings estimate revisions indicate whether analysts’ expectations for the firm’s profits have improved or worsened. Tyson Foods has an Earnings Estimate Revisions Grade of A, based on a score of 82, which is very positive. The grade is based on the statistical significance of its latest two quarterly earnings surprises and the increases in consensus earnings estimate for the current fiscal year over the past month and past three months.
Tyson Foods reported a positive earnings surprise of 29.9% for the fourth quarter of 2024. For the third quarter, it reported a positive earnings surprise of 33.7%. Over the last month, the consensus earnings estimate for full-year 2025 has been revised upward from $3.474 to $3.733 per share. Nine analysts have raised their full-year earnings forecasts while none have reduced them.
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The stocks meeting the criteria of the approach do not represent a “recommended” or “buy” list. It is important to perform due diligence.
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