Tyson Foods (TSN) ended the recent trading session at $57.79, demonstrating a -1.45% change from the preceding day's closing price. This change lagged the S&P 500's 0.46% gain on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.57%.
Prior to today's trading, shares of the meat producer had gained 2.57% outpaced the Consumer Staples sector's loss of 0.09% and lagged the S&P 500's gain of 4.22%.
The upcoming earnings release of Tyson Foods will be of great interest to investors. On that day, Tyson Foods is projected to report earnings of $0.98 per share, which would represent a year-over-year decline of 14.04%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.13 billion, indicating a 3.73% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.86 per share and a revenue of $55.61 billion, demonstrating changes of -6.31% and +2.15%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Tyson Foods. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Tyson Foods holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Tyson Foods is currently exchanging hands at a Forward P/E ratio of 15.2. This represents a premium compared to its industry average Forward P/E of 12.35.
Investors should also note that TSN has a PEG ratio of 1.35 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TSN's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Food - Meat Products industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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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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