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Why the Market Dipped But Tyson Foods (TSN) Gained Today

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Tyson Foods (TSN - Free Report) closed at $52.85 in the latest trading session, marking a +1.44% move from the prior day. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow experienced a rise of 0.44%, and the technology-dominated Nasdaq saw a decrease of 0.76%.

Heading into today, shares of the meat producer had lost 3.52% over the past month, outpacing the Consumer Staples sector's loss of 3.79% and lagging the S&P 500's gain of 1.14%.

The investment community will be paying close attention to the earnings performance of Tyson Foods in its upcoming release. In that report, analysts expect Tyson Foods to post earnings of $0.9 per share. This would mark a year-over-year decline of 2.17%. Alongside, our most recent consensus estimate is anticipating revenue of $14.01 billion, indicating a 3.31% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.89 per share and revenue of $54.94 billion. These totals would mark changes of +25.48% and 0%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Tyson Foods. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.85% fall in the Zacks Consensus EPS estimate. Tyson Foods is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Tyson Foods is currently trading at a Forward P/E ratio of 13.12. This expresses a premium compared to the average Forward P/E of 11.15 of its industry.

Also, we should mention that TSN has a PEG ratio of 0.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Food - Meat Products industry was having an average PEG ratio of 1.28.

The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 240, putting it in the bottom 3% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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