Is Tyson Foods (TSN) a Great Value Stock Right Now?

TSN

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Tyson Foods (TSN - Free Report) is a stock many investors are watching right now. TSN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 12.04, while its industry has an average P/E of 15.63. TSN's Forward P/E has been as high as 12.05 and as low as 8.38, with a median of 10.09, all within the past year.

TSN is also sporting a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSN's PEG compares to its industry's average PEG of 1.82. Over the past 52 weeks, TSN's PEG has been as high as 1.34 and as low as 0.76, with a median of 0.92.

Another valuation metric that we should highlight is TSN's P/B ratio of 2.07. The P/B ratio is used to compare a stock's market value with 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 5.29. Over the past 12 months, TSN's P/B has been as high as 2.18 and as low as 1.45, with a median of 1.78.

Finally, investors will want to recognize that TSN has a P/CF ratio of 9.45. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TSN's P/CF compares to its industry's average P/CF of 15.42. Over the past year, TSN's P/CF has been as high as 9.45 and as low as 4.70, with a median of 6.71.

These are just a handful of the figures considered in Tyson Foods's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TSN is an impressive value stock right now.

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