Smithfield Foods Thrives as Pork Processor with Negative Beta

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Smithfield Foods, the largest pork processor and hog producer in the U.S., has seen its stock price rise 31% year-to-date and 46% over the past 12 months. The company's negative beta of -0.30 means its stock moves in the opposite direction of the broader market, making it a good diversifier for investors during market downturns.

Why it matters

Smithfield Foods' performance highlights how certain defensive sectors and stocks can provide stability and growth when the overall market is struggling. As an established player in the pork industry with leading market share, Smithfield has been able to navigate challenges like tariffs and inflation to deliver strong financial results.

The details

Smithfield Foods, which went public again in 2025 after being private since 2013, reported net sales of $15.5 billion in fiscal 2025, up 10% year-over-year, and earnings of $0.83 per share, up 54%. The company was able to improve profitability through a 'rightsizing' strategy that reduced internal hog production by 40%. Smithfield also has a high dividend yield of 4.25% and is trading at just 11 times earnings.

• Smithfield Foods went public again in January 2025 after being private since 2013.
• The company reported strong fiscal 2025 results, with net sales up 10% and earnings up 54% year-over-year.

What’s next

Analysts are bullish on Smithfield Foods, with 88% rating the stock as a buy and a median price target of $31 per share, which is 5% above the current trading price.