Smithfield Foods, Inc. (SFD): A Match Made in Hog Heaven

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Despite its size, Smithfield is the only company that registered positive earnings growth in the most recent quarter. While Hormel Foods Corporation (NYSE:HRL)’s earnings declined a modest 2%, Tyson Foods, Inc. (NYSE:TSN)’s earnings were down by more than 40% year over year. The competition seems ready for slaughter.

The bottom line

Shuanghui’s acquisition of Smithfield Foods, Inc. (NYSE:SFD), just opened a door to the worlds largest market and there are a lot of hungry mouths to feed. Smithfield should become the global pork producer and increase its scale many times over.

Nicholas Kitonyi has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article A Match Made in Hog Heaven originally appeared on Fool.com.

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