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Why Tyson Foods (TSN) Outpaced the Stock Market Today

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The most recent trading session ended with Tyson Foods (TSN - Free Report) standing at $59.03, reflecting a +0.25% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow experienced a drop of 0.33%, and the technology-dominated Nasdaq saw an increase of 0.76%.

The meat producer's shares have seen an increase of 1.59% over the last month, surpassing the Consumer Staples sector's loss of 2.27% and the S&P 500's gain of 1.47%.

The upcoming earnings release of Tyson Foods will be of great interest to investors. The company's earnings report is expected on November 12, 2024. The company's upcoming EPS is projected at $0.64, signifying a 72.97% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.33 billion, reflecting a 0.17% fall from the equivalent quarter last year.

It is also important to note the recent changes to analyst estimates for Tyson Foods. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 14.21% lower. Right now, Tyson Foods possesses a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Tyson Foods currently has a Forward P/E ratio of 18.06. This represents no noticeable deviation compared to its industry's average Forward P/E of 18.06.

We can additionally observe that TSN currently boasts a PEG ratio of 0.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Food - Meat Products industry had an average PEG ratio of 0.38 as trading concluded yesterday.

The Food - Meat Products industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 231, finds itself in the bottom 9% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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