Back to top

Image: Bigstock

Tyson Foods (TSN) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Tyson Foods (TSN - Free Report) closed at $85.79, marking a +0.63% move from the previous day. This move outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.17%.

Coming into today, shares of the meat producer had lost 2.55% in the past month. In that same time, the Consumer Staples sector lost 0.69%, while the S&P 500 lost 6.79%.

Tyson Foods will be looking to display strength as it nears its next earnings release, which is expected to be August 8, 2022. The company is expected to report EPS of $1.92, down 28.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.36 billion, up 7.03% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.14 per share and revenue of $52.5 billion. These totals would mark changes of +10.39% and +11.59%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Tyson Foods. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Tyson Foods currently has a Zacks Rank of #3 (Hold).

Investors should also note Tyson Foods's current valuation metrics, including its Forward P/E ratio of 9.33. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.33.

It is also worth noting that TSN currently has a PEG ratio of 1.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Meat Products industry currently had an average PEG ratio of 1.25 as of yesterday's close.

The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TSN in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Tyson Foods, Inc. (TSN) - free report >>

Published in