Smithfield Foods' IPO priced below expectations, reflecting volatile earnings and numerous risks, making the stock appear cheap, but caution is warranted. Learn more on SFD stock here.

Smithfield Foods, Inc., an American food company with a leading position in packaged meats and fresh pork products, debuted on the Nasdaq Global Select Market under the ticker symbol (NASDAQ:SFD). The initial public offering (IPO) opened at $21.

Hedgeye recommends Smithfield Foods (SFD) as a long idea post-IPO, citing potential 50% upside and undervaluation compared to peers.

The offering has been priced at $20 per share, not the $23 to $27 range suggested by the meat giant last week.