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Tyson Foods (TSN) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Tyson Foods (TSN - Free Report) closed at $55.75 in the latest trading session, marking a -2.81% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.79%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, lost 0.92%.

Shares of the meat producer have appreciated by 3.71% over the course of the past month, outperforming the Consumer Staples sector's gain of 0.23%, and lagging the S&P 500's gain of 5.22%.

Investors will be eagerly watching for the performance of Tyson Foods in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 1.15% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.64 billion, indicating a 2.11% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.9 per share and revenue of $54.59 billion, which would represent changes of +25.81% and +2.41%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tyson Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Tyson Foods is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Tyson Foods is currently exchanging hands at a Forward P/E ratio of 14.73. This signifies a premium in comparison to the average Forward P/E of 12.24 for its industry.

We can also see that TSN currently has a PEG ratio of 0.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Food - Meat Products industry had an average PEG ratio of 2.44.

The Food - Meat Products industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 192, this industry ranks in the bottom 23% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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