Finally, an answer to the age-old question: Chicken or egg?
Investors have flocked to cheap protein providers.
The flight to chicken continues among investors, as poultry stocks enjoy a rare moment in the limelight. Meat producer Tyson reported strong results in its chicken division earlier this week, amid growing signs beef prices have risen too far for the cash constrained part of the American public to stomach. Poultry giant Pilgrim’s Pride — more heavily concentrated in chicken — soared on the news, in a week that was otherwise pretty rocky for stocks. (It’s up roughly 60% this year, compared to an 11% gain for the S&P 500.)
We’re not just plucking these numbers out of nowhere. Demand for cheaper proteins is part the well-established “pivot to value” story companies have been telling for the last few months, a reflection of both the inflation slowdown and some possible signs of softening in the economy.
One of the cheapest proteins, even after the inflation of the last few years that had consumers squawking, is the incredible, edible egg. But the share price performance of the country’s largest egg producer Cal-Maine hasn’t been able to keep pace with Pilgrim’s Pride this year, which finally provides an answer to the age old question of which came first.
