The spotlight is back on leading U.S. beef producers such as Tyson Foods (TSN), Hormel Foods (HRL), and Pilgrim’s Pride (PPC). The U.S. Department of Justice has reportedly initiated a criminal investigation into large meatpackers, according to the Wall Street Journal, which cited insiders.
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Beef Companies on the Chopping Block
The revelation comes as Washington’s chief law enforcer in November launched a probe into such companies after President Donald Trump alleged that majority foreign-owned meatpackers were colluding to artificially inflate beef prices in the country. In a post on X at the time, Trump championed the investigation to ensure that these corporations “are not criminally profiting at the expense of the American people.”
On Monday, the outlet reported that the probe is being treated as a criminal case, meaning investigators are trying to determine whether antitrust law was broken in a way that could be charged as a crime and not just a civil violation. However, the department itself has not confirmed that this is the nature of its investigation.
U.S. Beef Prices Reach All-Time-High
The latest update comes as the price of beef in the U.S. has been soaring in recent years, hitting a new record-high last week. The situation marks a double whammy for consumers, who are already struggling with rising grocery bills.
The price of live cattle has climbed by more than 25% over the last 12 months, even as the cattle herd continues to shrink in the world’s second-largest beef production market. According to the U.S. Department of Agriculture, 2.2 million head were slaughtered in the U.S. in March compared to 2.5 million in the same month last year.
Which Is the Best Beef Stock to Buy?
TipRanks’ Stock Comparison tool shows that Hormel (HRL) currently offers the biggest upside of over 25%. This is based on an average price target of $26.75, even though HRL is currently rated as Hold by analysts.
On the contrary, JBS (JBS) enjoys a Strong Buy consensus rating and holds a closer upside potential of 17%. This is based on an average price target of $20.67.
