Stocks in the News: Medtronics, Tyson, Sysco

Posted: May 07, 2013 12:01 AM

Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.     

Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.              

Stock number one is:             

Medtronic Inc., (SYMBOL:  MDT) and the headline says:         

Medtronic Announces FDA Approval of Cardiac Therapy Devices  -- Yahoo! News

Medtronic Inc., the world’s biggest supplier of heart-rhythm devices, won FDA approval for its Viva device, which resynchronizes the beating of the heart in heart failure patients.  The device provides cost savings for the patient, fewer hospital and doctor visits, and has a 25% longer battery life vs. older heart therapies.    

Earnings are projected to grow 4-7% per year for the next three years.  The PE is 13, and has ranged from 9 to 16 in the last three years.             

The stock is breaking out of a three-year trading range and heading toward resistance around $50. 

Our Ransom Note trendline says:  STAY ON THE SIDELINES.                 MDT Chart

MDT data by YCharts

Stock number two is:            

Tyson Foods Inc., (SYMBOL: TSN) and the headline says:       

Tyson Foods Net Falls 43% on Higher Costs -- Dow Jones Newswire           

Tyson Foods reported a disappointing second quarter, as drought conditions provoked higher grain, beef and chicken prices and lowered profit margins.  Earnings were down 43% year-over-year as consumers switched to less expensive chicken products.       

Earnings are projected to grow 9%, 16% and 12% in the next three years.  The PE is 11.3, and has recently ranged from 6 to 13.    

The stock price is up 65% since August, and has just passed the 2007 high of $24 per share.  Watch for the stock to trade between $23 and $25 in the near-term.         

Our Ransom Note trendline says..... STAY ON THE SIDELINES.              TSN Chart

TSN data by YCharts

Stock number three is:          

Sysco Corp, (SYMBOL: SYY) and the headline says:       

Sysco Corp. Posts Earnings Miss – Citi Research           

North American food distributor Sysco Corporation reported a year-over-year drop in third quarter earnings and a slight sales increase.  Chief Executive Bill DeLaney attributed the disappointment to a decrease in consumer spending in restaurants, and adverse weather conditions.   

Earnings per share are expected to be down 1% this year, then up 10% per year for the next two years.        

After trading sideways for over three years, the stock recently rose to the mid-$30’s.  Current shareholders are still waiting for the stock to regain its highs from 2004, and should use stop-loss orders to retain recent gains.      

Our Ransom Note trendline says....  STAY ON THE SIDELINES.

SYY Chart

SYY data by YCharts