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

TSN

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

One stock to keep an eye on is Tyson Foods (TSN - Free Report) . TSN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.84, while its industry has an average P/E of 15.81. Over the past year, TSN's Forward P/E has been as high as 13.09 and as low as 8.38, with a median of 10.14.

Investors should also note that TSN holds a PEG ratio of 1.45. 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 2.11. Over the last 12 months, TSN's PEG has been as high as 1.45 and as low as 0.76, with a median of 0.92.

We should also highlight that TSN has a P/B ratio of 2.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.93. Over the past 12 months, TSN's P/B has been as high as 2.22 and as low as 1.45, with a median of 1.78.

Finally, investors should note that TSN has a P/CF ratio of 9.78. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.02. TSN's P/CF has been as high as 9.87 and as low as 4.70, with a median of 6.72, all within the past year.

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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