With Smithfield Foods, Inc. (SFD) Merger Opposed, Tyson Foods, Inc. (TSN) Looks Tasty

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While I thought 2013 would be the year to invest in pork — and I thought Smithfield Foods, Inc. (NYSE:SFD) was the best bet of them all, though admittedly, because of industry trends, not as a takeover candidate — it seems there’s still plenty of meat on the bone with this industry, and it wouldn’t be surprising to see Starboard Value come through with a better plan.

Because consumers continue to turn in greater numbers to pork for their protein needs, investors would do well to seek out other possibilities here. Pork prices are higher, hurting companies like Hormel and Hillshire Brands, which saw higher input costs weigh on results. But despite the downturn due to the loss of some international markets, Tyson Foods, Inc. (NYSE:TSN) is my next favorite in the space.

With a broad portfolio of meats to smooth out any vagaries due to an outbreak of swine flu or mad cow disease, and with Smithfield Foods likely going away one way or the other, Tyson could be an investor’s other pork choice.

The article With Smithfield Merger Opposed, Tyson Looks Tasty originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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