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Are Investors Undervaluing Tyson Foods (TSN) Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Tyson Foods (TSN - Free Report) . TSN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.89. This compares to its industry's average Forward P/E of 15.54. Over the last 12 months, TSN's Forward P/E has been as high as 13.20 and as low as 10.61, with a median of 11.61.
Another notable valuation metric for TSN is its P/B ratio of 1.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TSN's current P/B looks attractive 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 1.84 and as low as 1.44, with a median of 1.69.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TSN has a P/S ratio of 0.64. This compares to its industry's average P/S of 0.8.
Finally, investors will want to recognize that TSN has a P/CF ratio of 8.46. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TSN's current P/CF looks attractive when compared to its industry's average P/CF of 13.78. Within the past 12 months, TSN's P/CF has been as high as 8.70 and as low as 6.70, with a median of 7.93.
Value investors will likely look at more than just these metrics, but the above data helps show that Tyson Foods, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, TSN sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Tyson Foods (TSN) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Tyson Foods (TSN - Free Report) . TSN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.89. This compares to its industry's average Forward P/E of 15.54. Over the last 12 months, TSN's Forward P/E has been as high as 13.20 and as low as 10.61, with a median of 11.61.
Another notable valuation metric for TSN is its P/B ratio of 1.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TSN's current P/B looks attractive 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 1.84 and as low as 1.44, with a median of 1.69.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TSN has a P/S ratio of 0.64. This compares to its industry's average P/S of 0.8.
Finally, investors will want to recognize that TSN has a P/CF ratio of 8.46. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TSN's current P/CF looks attractive when compared to its industry's average P/CF of 13.78. Within the past 12 months, TSN's P/CF has been as high as 8.70 and as low as 6.70, with a median of 7.93.
Value investors will likely look at more than just these metrics, but the above data helps show that Tyson Foods, Inc. Is likely undervalued currently. And when considering the strength of its earnings outlook, TSN sticks out at as one of the market's strongest value stocks.