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Tyson Foods (TSN) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw Tyson Foods (TSN - Free Report) ending at $61.80, denoting a -0.08% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.

Shares of the meat producer witnessed a loss of 0.99% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 4.12% and the S&P 500's gain of 1.54%.

The investment community will be closely monitoring the performance of Tyson Foods in its forthcoming earnings report. The company's upcoming EPS is projected at $0.64, signifying a 72.97% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.33 billion, reflecting a 0.17% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.82 per share and a revenue of $53.07 billion, representing changes of +110.45% and +0.36%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Tyson Foods. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Tyson Foods possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Tyson Foods is currently trading at a Forward P/E ratio of 21.93. Its industry sports an average Forward P/E of 20.61, 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 0.43. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Food - Meat Products industry was having an average PEG ratio of 0.43.

The Food - Meat Products industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 17% of all industries, numbering over 250.

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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