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

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In the latest trading session, Tyson Foods (TSN - Free Report) closed at $87.56, marking a +0.06% move from the previous day. This move lagged the S&P 500's daily gain of 1.56%. Meanwhile, the Dow gained 1.29%, and the Nasdaq, a tech-heavy index, added 0.12%.

Prior to today's trading, shares of the meat producer had gained 2% over the past month. This has outpaced the Consumer Staples sector's gain of 1.7% and lagged the S&P 500's gain of 7.11% in that time.

Investors will be hoping for strength from Tyson Foods as it approaches its next earnings release, which is expected to be August 8, 2022. On that day, Tyson Foods is projected to report earnings of $1.88 per share, which would represent a year-over-year decline of 30.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.31 billion, up 6.65% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.07 per share and revenue of $52.4 billion, which would represent changes of +9.54% and +11.37%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Tyson Foods. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. Tyson Foods currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Tyson Foods is currently trading at a Forward P/E ratio of 9.64. Its industry sports an average Forward P/E of 9.08, so we one might conclude that Tyson Foods is trading at a premium comparatively.

The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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