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Tyson Foods (TSN) Gains But Lags Market: What You Should Know

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Tyson Foods (TSN - Free Report) closed the most recent trading day at $52.51, moving +1.37% from the previous trading session. The stock lagged the S&P 500's daily gain of 9.28%. At the same time, the Dow added 9.36%, and the tech-heavy Nasdaq gained 9.34%.

Coming into today, shares of the meat producer had lost 36.19% in the past month. In that same time, the Consumer Staples sector lost 22.7%, while the S&P 500 lost 26.56%.

TSN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.15, down 4.17% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.97 billion, up 5.03% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.22 per share and revenue of $45.28 billion. These totals would mark changes of +13.92% and +6.78%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TSN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.24% lower. TSN is currently a Zacks Rank #3 (Hold).

Investors should also note TSN's current valuation metrics, including its Forward P/E ratio of 8.33. Its industry sports an average Forward P/E of 10, so we one might conclude that TSN is trading at a discount comparatively.

Meanwhile, TSN's PEG ratio is currently 0.99. 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. The Food - Meat Products was holding an average PEG ratio of 0.99 at yesterday's closing price.

The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% 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.

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