In the latest trading session, Tyson Foods (TSN) closed at $63.11, marking a -1.1% move from the previous day. This change lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq appreciated by 0.87%.
Shares of the meat producer witnessed a gain of 3.2% over the previous month, beating the performance of the Consumer Staples sector with its gain of 1.23% and the S&P 500's loss of 5.59%.
Investors will be eagerly watching for the performance of Tyson Foods in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.85, marking a 37.1% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.1 billion, reflecting a 0.2% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.82 per share and a revenue of $53.76 billion, representing changes of +23.23% and +0.85%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Tyson Foods. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.46% rise in the Zacks Consensus EPS estimate. Tyson Foods presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Tyson Foods is currently being traded at a Forward P/E ratio of 16.7. This expresses a premium compared to the average Forward P/E of 13.51 of its industry.
It's also important to note that TSN currently trades at a PEG ratio of 0.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Food - Meat Products industry held an average PEG ratio of 0.86.
The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 15, putting it in the top 7% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Tyson Foods, Inc. (TSN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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