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.

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

Smithfield Foods ( NASDAQ: SFD) opened for trading at $21.05 before settling back to $20.18 at 12:50 p.m. The early trading values the food processing giant at just over $8.0 billion.

Smithfield Foods and its Chinese parent raised around $522 million from the U.S. pork giant's initial public offering after pricing shares below their marketed range.

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.

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

Listen to this article Smithfield Foods officials rang the opening bell Tuesday at the Nasdaq MarketSite in New York City, as the packaged meat and fresh pork giant launched its initial public offering of 26 million stock shares at $20 per share on the Nasdaq Global Select Market,

Smithfield Foods, the largest pork processor in the U.S., said it priced its initial public offering well below its forecast range, raising $521.7 million for the company and the selling stockholder.

Smithfield completed an initial public offering and is expected to start trading on the Nasdaq on Tuesday under the symbol SFD. Since late 2013 Smithfield has been a subsidiary of

CORRECTION: An initial version of this story misspelled Smithfield Foods Inc. in the headline. Smithfield Foods Inc. is offering Wall Street a seat at the table for potential growth in its packaged meats business as the bacon and lunch-meat maker set an estimated market capitalization of nearly $11 billion in its upcoming initial public offering.

Smithfield Foods is seeking to raise as much as $940m in a public share offering, according to the US pork processor's IPO filing. In the document registered with the US Securities and Exchange Commission (SEC),

Smithfield Foods, Inc. (the "Company"), an American food company and an industry leader in value-added packaged meats and fresh pork, today announced the pricing of an underwritten initial public offering of 26,