Do you have these 2 top food stocks on your July watchlist?
Food stocks have been quite volatile during the current economic crisis. Considering many companies had to close manufacturing plants and restaurant, this is no surprise. Many food companies saw a revenue increase during these times as well. Some brands that keep food in supermarkets have been able to do well financially. This is because people are shopping at the market rather than eating out more.
When it comes to restaurants, reopening news will cause those food stocks to rise. One niche in the food industry doing well is delivery services. Pizza delivery restaurants and apps like DoorDash have increased business since stay at home orders began. So food stocks related to those companies have seen a profit increase.
The revenue loss for some companies has been bad for food stocks. Some foods stocks are half of the share price they once were. Some food companies have filed for bankruptcy or closed locations permanently. Clearly there are many ways a food stock can be affected. Let’s have a look at some food stocks that have been trending in the market.
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Top Food Stocks To Watch In July 2020: Tyson Foods
Tyson Foods Inc. (TSN stock report) is a food stock to watch due to its recent market movement. Tyson Foods is the world’s second largest processor of chicken, beef, and pork. It also runs one of the largest marketing campaigns for these products. Tyson saw a large drop in stock price due to it not taking proper coronavirus precautions early enough. This caused a total of 25 Tyson employees to die from the virus. China stopped imports from Tyson Foods on June 22nd which caused its stock price to drop even more. This was done due to fears of spreading the virus more.
On June 22nd, shares of TSN stock fell about 3%. This was due to China stopping the imports as mentioned before. TSN stock price has still steadily been around $60 a share since mid March. Shares of TSN stock dropped as much as 46% when the pandemic started. Now that TSN stock price has seen this 3% decrease, could it be back on the rise soon? Well that is unsure but it is possibly a good time to look into TSN stock as a potential food stock to buy.
Speculation for improvement in Tyson’s factories can be the determining factor for TSN stock to rise. TSN stock price has been able to stay relatively the same for a while now. This could mean an increase for TSN stock coming in the future. If Tyson gets its import rights back to China it can see an increase in TSN stock price. Sales improvement can also help TSN stock in the market. This is what makes Tyson Foods a food stock to watch.
Top Food Stocks To Watch In July 2020: Wingstop
This next food stock just reached its 52 week high, Wingstop Inc. (WING stock report). Wingstop is a chicken wing restaurant chain that was founded in 1994. It has over 1000 restaraunts and is based in Texas. Back in 2015, Wingstop became a publicly traded company. Wingstop’s menu consist of wings, chicken strips, and many choices for sides. It has locations in many countries across the world.
Shares of WING stock have been on the rise in the market. This recent momentum for WING stock price is due to Wingstop adapting to the new normal very quickly. On June 22nd, WING stock reached its all time high at $138.35 a share. WING stock price is directly affected by the restaurants profit and business. On June 18th WING stock was at around $120 a share. On June 22nd, WING stock price was trading an average of $135 a share, near the high it reached on the same day. So shares of WING stock are up 12.5% or so from the 18th.
WING stock and TSN stock are just two of many food stocks to watch. Solid business practices made WING stock price go up. Negative virus control in Tyson’s factories caused TSN stock to fall. Both food stocks have the potential to still see momentum in the market. Even when a food stock is down, news can come out that cause an uptick. It is important to look for news and updates about food stocks to know when you should invest.