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Should Value Investors Buy Tyson Foods (TSN) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Tyson Foods (TSN - Free Report) . TSN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.38 right now. For comparison, its industry sports an average P/E of 13.87. Over the past 52 weeks, TSN's Forward P/E has been as high as 13.95 and as low as 8.38, with a median of 10.14.
Investors will also notice that TSN has a PEG ratio of 0.85. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSN's PEG compares to its industry's average PEG of 1.47. TSN's PEG has been as high as 1.08 and as low as 0.76, with a median of 0.92, all within the past year.
We should also highlight that TSN has a P/B ratio of 1.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.49. Within the past 52 weeks, TSN's P/B has been as high as 2.53 and as low as 1.45, with a median of 1.95.
Finally, we should also recognize that TSN has a P/CF ratio of 5.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TSN's current P/CF looks attractive when compared to its industry's average P/CF of 9.26. Over the past year, TSN's P/CF has been as high as 8.42 and as low as 4.70, with a median of 6.46.
These are only a few of the key metrics included in Tyson Foods's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TSN looks like an impressive value stock at the moment.
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Should Value Investors Buy Tyson Foods (TSN) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Tyson Foods (TSN - Free Report) . TSN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.38 right now. For comparison, its industry sports an average P/E of 13.87. Over the past 52 weeks, TSN's Forward P/E has been as high as 13.95 and as low as 8.38, with a median of 10.14.
Investors will also notice that TSN has a PEG ratio of 0.85. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TSN's PEG compares to its industry's average PEG of 1.47. TSN's PEG has been as high as 1.08 and as low as 0.76, with a median of 0.92, all within the past year.
We should also highlight that TSN has a P/B ratio of 1.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.49. Within the past 52 weeks, TSN's P/B has been as high as 2.53 and as low as 1.45, with a median of 1.95.
Finally, we should also recognize that TSN has a P/CF ratio of 5.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TSN's current P/CF looks attractive when compared to its industry's average P/CF of 9.26. Over the past year, TSN's P/CF has been as high as 8.42 and as low as 4.70, with a median of 6.46.
These are only a few of the key metrics included in Tyson Foods's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TSN looks like an impressive value stock at the moment.