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Are Investors Undervaluing Tyson Foods (TSN) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Tyson Foods (TSN - Free Report) . TSN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Investors will also notice that TSN has a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TSN's PEG compares to its industry's average PEG of 0.75. Over the last 12 months, TSN's PEG has been as high as 0.50 and as low as 0.34, with a median of 0.45.
Another valuation metric that we should highlight is TSN's P/B ratio of 1.09. Investors use the P/B ratio to look at a stock's market value versus 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 1.56. Within the past 52 weeks, TSN's P/B has been as high as 1.14 and as low as 0.86, with a median of 1.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TSN has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.46.
Finally, investors should note that TSN has a P/CF ratio of 14.91. 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 15.55. Within the past 12 months, TSN's P/CF has been as high as 15.39 and as low as 5.47, with a median of 9.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tyson Foods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TSN feels like a great value stock at the moment.
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Are Investors Undervaluing Tyson Foods (TSN) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Tyson Foods (TSN - Free Report) . TSN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Investors will also notice that TSN has a PEG ratio of 0.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TSN's PEG compares to its industry's average PEG of 0.75. Over the last 12 months, TSN's PEG has been as high as 0.50 and as low as 0.34, with a median of 0.45.
Another valuation metric that we should highlight is TSN's P/B ratio of 1.09. Investors use the P/B ratio to look at a stock's market value versus 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 1.56. Within the past 52 weeks, TSN's P/B has been as high as 1.14 and as low as 0.86, with a median of 1.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TSN has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.46.
Finally, investors should note that TSN has a P/CF ratio of 14.91. 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 15.55. Within the past 12 months, TSN's P/CF has been as high as 15.39 and as low as 5.47, with a median of 9.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tyson Foods is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TSN feels like a great value stock at the moment.