Tyson Foods, Inc. (TSN - Analyst Report) is generating stable earnings and sales growth as its core food brands continue to provide stability. This Zacks Rank #1 (Strong Buy) is expected to have record earnings this year.

Tyson Foods is one of the leading food companies producing chicken, beef and pork. But it was its recent acquisition of food giant Hillshire Brands in 2014 that propelled the company into another category and provided earnings stability versus the up and down volatility of poultry and meat prices.

Its brands now include Tyson, Jimmy Dean, Sara Lee, Ball Park, Wright, Aidells, State Fair and Hillshire Farm. Its prepared foods include bacon, breakfast sausages, turkey, lunchmeat, hot dogs, pizza crusts, tortillas and desserts.

It has 400 facilities in the United States and around the world.

Another Big Beat in the Fiscal Third Quarter

On August 8, Tyson reported its fiscal 2016 third quarter results and easily beat the Zacks Consensus Estimate by $0.14.

Earnings were $1.21 versus the consensus of $1.07.

All operating segment results were in or above their normalized operating margin ranges with the Chicken segment being especially strong, seeing a record 13.9% return on sales.

Raised Full Year Guidance

On the back of strong momentum, Tyson raised full year earnings guidance to $4.40 to $4.50 a share, which is 40% higher than a year ago. It expects record earnings this fiscal year. As a result, the analyst also raised their estimates. The Zacks Consensus Estimate jumped to $4.52 from $4.35 over the last 60 days, which is slightly higher than the company's guidance.

The analysts are also bullish on fiscal 2017 as the Zacks Consensus Estimate has jumped to $4.82 from $4.47 over the last 2 months. That is earnings growth of 6.8%. Tyson believes it can get earnings growth up to the high single digits in fiscal 2017. Additionally, on Sep 8, at the Consumer Staples Conference, Tyson confirmed its bullish stance.

Shares Near 52-Week Highs

Tyson shares have been trending higher in 2016.

But even though they're trading near 52-week highs, they still have an attractive valuation. It has a forward P/E of 16.7 which is under the average of the S&P 500.

Tyson has also been returning money to shareholders. In the fiscal third quarter, it spent $425 million to repurchase 6.6 million shares.

The company pays a dividend, currently yielding 0.8%.

For investors looking for a way to invest in the growing food industry, Tyson is one to keep on your shortlist.