Editor's Note: Tech legend Jeff Brown — the same man who picked Tesla before it soared 2,150% — says while everyone thinks Elon's empire is crumbling, there's a $25 trillion revolution brewing that could 10X Tesla's past success. Click here to see what he uncovered or read more below...
Dear Reader,
While everyone obsesses over Tesla's car sales plummeting...
Jensen Huang — CEO of Nvidia and arguably the most powerful man in AI — just made a stunning declaration about Tesla's future.
He said Tesla's work on what I call “Manifested AI” could be part of a "multi-trillion-dollar future industry."
Think about that for a second…
This is the man who built the $4 trillion company that brought forward every major AI breakthrough of the past decade.
He doesn't throw around trillion-dollar predictions lightly.
And yet…
Nvidia’s CEO is telling everyone exactly what I’ve been saying for years now.
While most people think Tesla is just another electric car company…
The truth is: Tesla is the most valuable AI company in the world.
And right now…
Tesla is about to prove it by shocking the world with their BIGGEST AI breakthrough yet…
One that will allow AI to “escape” out of your computer screen…
Manifest itself here in the real physical world…
All while sparking a 25,000% growth market virtually overnight.
The best part of all?
I discovered how you can get in on this brand new 25,000% growth market, with a little-known stock that is 168 times SMALLER than Nvidia itself.
Click here now for my full report.
Regards,
Jeff Brown
Founder & CEO, Brownstone Research
Why Tyson Foods Looks Like a Tasty Treat for Income Investors Right Now
Reported by Thomas Hughes. Article Published: 2/2/2026.
Summary
- Tyson Foods’ stock is breaking out of its trading range, with improving operations and rising global protein demand supporting a stronger upside setup.
- The company pairs a value-leaning valuation with a solid dividend that looks sustainable and positioned for continued annual increases.
- Better-than-expected quarterly results and bullish technical signals suggest momentum is building toward a potential move above key resistance later this year.
Tyson Foods (NYSE: TSN) stock is breaking out of its trading range, signaling the potential for larger gains ahead for investors. The breakout is supported by improvements in operational quality and sustained global demand for protein.
Protein demand is expected to grow at an 8.5% compound annual growth rate (CAGR) over the next three to five years, underpinning price increases that compound the company's profitability outlook.
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In 2000, I told Barron's that a popular dot-com stock was headed for trouble. It dropped 90%. Now I'm making the opposite call on that same company: buy it now. This stock has become the lifeblood of AI data centers, yet almost no one has caught the story. While the media focuses on AI chip wars, they've missed this company's essential role in building out data centers. Their hardware is so critical that a single building uses enough of it to stretch around the world eight times. If you own Nvidia, you might want to pivot. If you missed Nvidia, this is your second chance at the AI data center buildout happening worldwide.
See the under-the-radar play fueling AI data centersThis matters because Tyson Foods is a relatively high-yielding stock that is expected to sustain annual dividend increases for the foreseeable future and currently trades at attractive value levels.
Growth and Capital Return Drive Robust Outlook for TSN Share Price
The 16x earnings multiple TSN traded at in early 2026 isn't a deep discount relative to peers such as Hormel. Hormel, also a quality dividend payer, is trading near the low end of its historical range; it averages closer to 23x earnings over time and has traded in the low 30x range in recent years, suggesting some multiple expansion is possible for high-protein stocks. More importantly, Tyson — whose valuation aligns with historical averages as of early 2026 — trades at only about 7x its 2030 forecasts, implying its stock price could increase by roughly 100% over the coming years even without multiple expansion. All it needs to do is execute its strategy, grow the business, and pay its dividend.
Tyson's dividend yield is notable. While not the highest in the consumer staples sector, it is above average at about 3%, well above the S&P 500's broad-market benchmark of roughly 1.05%. The payout ratio is expected to remain below 50% of forecasted earnings and to grow. One of the catalysts for further stock-price appreciation is the potential for accelerating dividend increases, since current distribution growth trails the forecasted double-digit earnings CAGR over the next five years.
Tyson has increased its dividend for 14 consecutive years, delivering a low-single-digit CAGR in recent periods while also repurchasing stock. Importantly, buybacks have been antidilutive and help offset the cost of higher distributions. On the long-term outlook, valuation, and dividend safety, forecasts put the 2026 payout near 25% of earnings, suggesting a modest acceleration in dividend CAGR should be easy to sustain.
Tyson Foods Outperforms in Q1; Guidance Is Better Than Forecasted
Tyson delivered a decent Q1 fiscal 2026 performance despite mixed results across segments. The company reported $14.31 billion in net revenue, up more than 5% year-over-year and beating expectations by roughly 215 basis points. Strength was driven by pricing, which rose about 6.5% on average, offset by a modest 0.31% systemwide volume decline. Pork, Chicken, and Prepared Foods led growth and margin improvement, while Beef and the International segment were weaker.
The margin picture was also better than feared. Pressure was evident, but less than expected, leaving an adjusted operating margin of 4%. Pork and Prepared Foods were the clear profit drivers. Systemwide adjusted EPS fell about 15%, compared with analysts' near-20% decline forecast. Free cash flow (FCF) declined as well but remained ample at $690 million, supporting an approximately 32% capital return-to-FCF payout ratio.
Tyson Stock's Advance Gains Momentum Following Q1 Earnings Release
Tyson's stock price dipped in premarket trading following the report and opened slightly lower versus the prior week. However, the dip triggered buying, which confirmed support at the 30-day exponential moving average (EMA). Because the price remains above longer-term EMAs, this 30-day EMA signal aligns with shifting market dynamics and accumulation, suggesting the stock could reach higher highs. The moving average convergence/divergence (MACD) indicator, which is converging with price action, also points to a strengthening market. The key resistance level sits near the early-February highs and could be breached by midyear, if not sooner.
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