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Hungry for Gains? Consider These 2 Food Stocks

Published 08/11/2021, 01:10 PM
Updated 08/11/2021, 02:30 PM
© Reuters.  Hungry for Gains? Consider These 2 Food Stocks

This morning featured another hot inflation report which shows that rising costs are spreading to other parts of the economy. Food producers outperform during periods of rising inflation as they are able to pass on costs to customers. Tyson Foods (NYSE:TSN) and Sanderson Farms (NASDAQ:SAFM) are two of the more intriguing food stocks.In most markets, food stocks are similar to consumer staples as they have reliable revenues and low margins, making their earnings results quite predictable. However, this is not the case in inflationary environments. &nbsp

In these environments, food stocks can massively outperform as they are well-equipped to pass on rising costs to their customers. A quick look at the food sector reveals there are plenty of solid candidates to choose from. &nbsp

Tyson Foods (TSN) and Sanderson Farms (SAFM) are two of the more intriguing food stocks at the current moment. Most people have not only heard of these companies but also regularly purchase their food products.

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