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Tyson Foods (TSN) Gains As Market Dips: What You Should Know

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Tyson Foods (TSN - Free Report) closed the most recent trading day at $65.81, moving +0.87% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.44%.

Heading into today, shares of the meat producer had gained 5.75% over the past month, outpacing the Consumer Staples sector's loss of 1.82% and the S&P 500's gain of 4.57% in that time.

Tyson Foods will be looking to display strength as it nears its next earnings release, which is expected to be February 6, 2023. In that report, analysts expect Tyson Foods to post earnings of $1.44 per share. This would mark a year-over-year decline of 49.83%. Our most recent consensus estimate is calling for quarterly revenue of $13.1 billion, up 1.31% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.36 per share and revenue of $54.08 billion, which would represent changes of -27.15% and +1.5%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Tyson Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Tyson Foods is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Tyson Foods is holding a Forward P/E ratio of 10.26. For comparison, its industry has an average Forward P/E of 12.1, which means Tyson Foods is trading at a discount to the group.

The Food - Meat Products industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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