Tyson Foods is a US consumer staples company.
It annually exports the largest percentage of beef out of the United States.
During recessions the demand for food still remains and sometimes discount retailers enjoy a surge of new customers seeking lower prices. The CEO of Tyson Foods, King, has said that their sales volumes are benefitting from competitors increasing prices.
Their price elasticity remains below historical levels
So, as we head into year end and speculation starts to grow about when the Federal Reserve will announce a pause in rates it could be worth looking at a consumer staple company like Tyson Foods.
Notice how, over the last 15 years, between November 17 and December 09 the company’s shares have gained 11 times for an average of 6.89%.
Major Trade Risks:
The major trade risk here is that previous seasonal patterns are not guaranteed to repeat each year and any negative news for Tyson Foods could invalidate the outlook.
Remember, don’t just trade it, but Seasonax it!