Back to top

Image: Bigstock

Tyson Foods (TSN) Stock Declines While Market Improves: Some Information for Investors

Read MoreHide Full Article

In the latest close session, Tyson Foods (TSN - Free Report) was down 1.57% at $57.13. The stock trailed the S&P 500, which registered a daily gain of 0.64%. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.69%.

Heading into today, shares of the meat producer had gained 1.97% over the past month, outpacing the Consumer Staples sector's loss of 0.94% and the S&P 500's gain of 0.55%.

The upcoming earnings release of Tyson Foods will be of great interest to investors. The company is expected to report EPS of $0.98, down 14.04% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $14.13 billion, indicating a 3.73% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.86 per share and revenue of $55.61 billion. These totals would mark changes of -6.31% and +2.15%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Tyson Foods. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Tyson Foods boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Tyson Foods currently has a Forward P/E ratio of 15.05. This indicates a premium in contrast to its industry's Forward P/E of 12.16.

We can also see that TSN currently has a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Food - Meat Products industry stood at 1.35 at the close of the market yesterday.

The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Tyson Foods, Inc. (TSN) - free report >>

Published in