Tyson Foods (TSN) ended the recent trading session at $55.11, demonstrating a +1.29% change from the preceding day's closing price. This change outpaced the S&P 500's 0.96% gain on the day. Elsewhere, the Dow saw an upswing of 0.89%, while the tech-heavy Nasdaq appreciated by 0.94%.
Shares of the meat producer have depreciated by 2.05% over the course of the past month, underperforming the Consumer Staples sector's loss of 1.5%, and the S&P 500's gain of 0.5%.
Investors will be eagerly watching for the performance of Tyson Foods in its upcoming earnings disclosure. In that report, analysts expect Tyson Foods to post earnings of $0.86 per share. This would mark a year-over-year decline of 1.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.64 billion, up 2.11% from the year-ago period.
TSN's full-year Zacks Consensus Estimates are calling for earnings of $3.9 per share and revenue of $54.59 billion. These results would represent year-over-year changes of +25.81% and +2.41%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Tyson Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Tyson Foods presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Tyson Foods is at present trading with a Forward P/E ratio of 13.97. Its industry sports an average Forward P/E of 12.24, so one might conclude that Tyson Foods is trading at a premium comparatively.
It is also worth noting that TSN currently has a PEG ratio of 0.71. 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. Food - Meat Products stocks are, on average, holding a PEG ratio of 2.33 based on yesterday's closing prices.
The Food - Meat Products industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 32% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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