4 Meat Stocks to Monitor Amid a Volatile and Uncertain Market

About the Industry

The Zacks Food – Meat Products industry comprises companies that manufacture, process, market, distribute and sell a wide range of meat products like chicken, pork, beef, prepared food and plant-based meats. Some companies also offer poultry and turkey products, alongside providing nutritional food products and supplements, desserts and drink mixes and industrial gelatin products. Most companies offer their products to retail and foodservice customers, while some cater to deli and commercial operators, including grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, industrial food processing companies, chain restaurants, international export companies, school cafeterias and hospitals, among others. Some products offered include frozen whole chicken, primary pork cuts, salads, sandwiches and meatballs. 

Major Trends Shaping the Future of the Meat Food Industry

Cost-Related Pressure: Meat producers continue to face elevated cost pressures as higher feed, livestock, labor and transportation expenses increase overall production costs. Persistent inflation has strained margins, while elevated living costs are reshaping consumer purchasing behavior. Households are shopping more cautiously, often buying smaller quantities per trip, reflecting tighter budgets. Even traditionally affordable protein options, such as chicken, are not immune to demand shifts during periods of economic uncertainty. These factors may pressure sales volumes and limit margin recovery across the sector.

Export Related Challenges: Export markets present ongoing challenges for meat producers due to trade policy uncertainties, biosecurity concerns and logistical disruptions. Fluctuations in global demand, currency movements and geopolitical tensions can affect shipment volumes and pricing dynamics. In addition, strong domestic demand at times reduces product availability for international markets. The evolving U.S.-China trade relationship remains a key variable influencing export performance. Heightened competition in global protein markets further adds to revenue volatility and margin risk.

Increased Protein Demand & Plant-Based Alternatives: Rising interest in high-protein diets continues to support long-term demand for meat products, particularly among health-conscious consumers and fitness-focused demographics. At the same time, plant-based alternatives are gaining traction as consumers explore diversified protein sources aligned with sustainability and wellness trends. While traditional meat remains dominant, alternative protein options are gradually expanding their presence in retail and foodservice channels. This evolving protein landscape is prompting innovation, product diversification and competitive repositioning across the broader market.

Zacks Industry Rank Indicates Dull Prospects

The Zacks Food – Meat Products industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #203, which places it in the bottom 16% of more than 243 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Given the industry’s dismal prospects, we present a few stocks that you may want to consider for your portfolio. However, before that, it’s worth taking a look at the industry’s performance and current valuation.

Industry vs. Broader Market

The Zacks Food – Meat Products industry has underperformed the broader Zacks Consumer Staples sector and the S&P 500 over the past year.

The industry has declined 23.5% over this period against the broader sector’s growth of 6.9% and the S&P 500’s rise of 18.2%.

One-Year Price Performance

Industry's Current Valuation

On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing Consumer Staple stocks, the industry is currently trading at 13.32X compared with the S&P 500’s 22.69X and the sector’s 18.2X.

Over the past five years, the industry has traded as high as 21.75X and as low as 11.95X, with the median being 15.26X, as the chart below shows.

Price-to-Earnings Ratio (Past Five Years)

4 Meat Food Stocks to Keep a Close Eye On

Tyson Foods: This Zacks Rank #3 (Hold) stock is one of the largest players in the global protein market, offering a broad portfolio of chicken, beef, pork and value-added prepared foods. Tyson Foods operates a diversified multi-protein model that helps balance volatility across livestock cycles and evolving consumer demand trends. The company owns well-recognized brands, such as Tyson, Jimmy Dean and Hillshire Farm, supporting strong retail visibility and consumer loyalty. With exposure across retail, foodservice and international markets, the company benefits from scale, integrated operations and an extensive distribution network. Its focus on operational efficiency, branded portfolio expansion and supply chain optimization supports its long-term competitive positioning. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for TSN’s current fiscal year earnings per share (EPS) has moved down from $3.94 to $3.88 in the last 30 days. Tyson Foods has a trailing four-quarter earnings surprise of roughly 16.5%, on average. Shares of TSN have gained 3.5% in the past year.

Price and Consensus: TSN

Hormel Foods: This Zacks Rank #3 company maintains a strong presence across retail and foodservice channels, supported by a diversified portfolio of branded protein and value-added food products. Hormel Foods continues to emphasize innovation through product development aligned with evolving consumer preferences, strengthening established brands, such as SPAM, Jennie-O and Skippy. The company’s Transform and Modernize initiative is focused on enhancing operational efficiency by simplifying processes, centralizing functions and optimizing its portfolio. Ongoing investments in capacity, technology and infrastructure support scalability, while disciplined acquisitions have expanded its reach in foodservice and international markets.

The Zacks Consensus Estimate for HRL’s current fiscal year EPS has remained unchanged at $1.43 over the past 30 days. Hormel Foods has a trailing four-quarter negative earnings surprise of 3.3%, on average. Shares of the company have lost 13.9% over the past year.

Price and Consensus: HRL

Smithfield Foods: This Zacks Rank #3 company is a vertically integrated pork producer with operations spanning packaged meats, fresh pork and hog production. Smithfield Foods leverages its integrated supply chain to help manage commodity volatility while supporting its value-added portfolio. The company focuses on optimizing product mix, strengthening branded and private-label offerings, and enhancing efficiency through automation and supply chain improvements. Strategic efforts to streamline operations and align production capacity support long-term profitability and operational resilience.

The Zacks Consensus Estimate for SFD’s current fiscal year EPS has remained unchanged at $2.39 in the last 30 days. Smithfield Foods has a trailing four-quarter earnings surprise of roughly 8.4%, on average. Shares of SFD have rallied 18.1% in the past year.

Price and Consensus: SFD

Beyond Meat: This Zacks Rank #3 company operates in the plant-based protein category, offering meat alternatives designed to appeal to health- and sustainability-focused consumers. Beyond Meat continues to refine its product portfolio to align with evolving taste preferences and nutritional expectations. The company is focused on cost reduction and operational efficiency through production consolidation, disciplined capacity management and investments in automation. With ongoing consumer interest in plant-based eating and alternative protein options, Beyond Meat remains positioned within a category that is evolving as pricing, competition and demand dynamics continue to adjust.

The Zacks Consensus Estimate for BYND’s loss for the current fiscal year has remained unchanged over the past 30 days at $1.12 per share. Shares of BYND have plunged 82.1% in the past year.

Price and Consensus: BYND

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This article originally published on Zacks Investment Research (zacks.com).

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