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Tyson's Big M&A Moves Have Transformed It Into a 'Fantastic Food Business'

Shares of Tyson Foods (TSN - Get Report) are rallying Monday, hitting new 52-week highs and approaching new all-time highs after reporting "fantastic" earnings, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.

Cramer had his doubts when Tyson announced its $7.7 billion acquisition of Hillshire Brands. The deal closed roughly three years ago and was done at a rather high valuation. However, management has proved to have superior vision for this deal, as Tyson Foods has created an incredible combination, he reasoned.

Tyson, which now consists of a number of different protein food brands, has kept itself out of the center aisles of the grocery story -- where sales are struggling and margins are tough. This is much better for business, as others like General Mills (GIS - Get Report) , Kellogg (K - Get Report) and Kraft Heinz (KHC - Get Report) struggle for growth.

The company is also making a larger push for natural and organic ingredients, he added, which will resonate well with certain shoppers. Tyson also remains a large supplier to McDonald's (MCD - Get Report) , though, he pointed out.

In all, management has built a "fantastic food business," reasoned Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.

Tyson beat on earnings per share and revenue estimates in the most recent quarter. Shares are up 1.28% to $75.09 in response and the stock is up almost 22% so far for 2017.

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