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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Tyson Foods (TSN - Free Report) . TSN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.29, while its industry has an average P/E of 18.54. Over the past 52 weeks, TSN's Forward P/E has been as high as 15.20 and as low as 9.80, with a median of 12.57.
We also note that TSN holds a PEG ratio of 1.07. 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 1.84. Over the last 12 months, TSN's PEG has been as high as 3.36 and as low as 0.89, with a median of 1.25.
Another notable valuation metric for TSN is its P/B ratio of 2.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.05. Over the past 12 months, TSN's P/B has been as high as 2.41 and as low as 1.64, with a median of 2.13.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TSN has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that TSN has a P/CF ratio of 9.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TSN's current P/CF looks attractive when compared to its industry's average P/CF of 14.60. Over the past year, TSN's P/CF has been as high as 10.99 and as low as 7.46, with a median of 9.63.
These are only a few of the key metrics included in Tyson Foods's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TSN looks like an impressive value stock at the moment.
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Is Tyson Foods (TSN) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Tyson Foods (TSN - Free Report) . TSN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.29, while its industry has an average P/E of 18.54. Over the past 52 weeks, TSN's Forward P/E has been as high as 15.20 and as low as 9.80, with a median of 12.57.
We also note that TSN holds a PEG ratio of 1.07. 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 1.84. Over the last 12 months, TSN's PEG has been as high as 3.36 and as low as 0.89, with a median of 1.25.
Another notable valuation metric for TSN is its P/B ratio of 2.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.05. Over the past 12 months, TSN's P/B has been as high as 2.41 and as low as 1.64, with a median of 2.13.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TSN has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that TSN has a P/CF ratio of 9.97. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TSN's current P/CF looks attractive when compared to its industry's average P/CF of 14.60. Over the past year, TSN's P/CF has been as high as 10.99 and as low as 7.46, with a median of 9.63.
These are only a few of the key metrics included in Tyson Foods's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TSN looks like an impressive value stock at the moment.