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Why the Market Dipped But Tyson Foods (TSN) Gained Today

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Tyson Foods (TSN - Free Report) closed the latest trading day at $59.69, indicating a +0.62% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.39%.

Heading into today, shares of the meat producer had lost 8.24% over the past month, lagging the Consumer Staples sector's gain of 2.28% and the S&P 500's gain of 2.43% in that time.

Market participants will be closely following the financial results of Tyson Foods in its upcoming release. In that report, analysts expect Tyson Foods to post earnings of $0.64 per share. This would mark year-over-year growth of 72.97%. Alongside, our most recent consensus estimate is anticipating revenue of $13.33 billion, indicating a 0.17% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.82 per share and a revenue of $53.07 billion, demonstrating changes of +110.45% and +0.36%, respectively, from the preceding 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 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained steady. 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 21.03. This indicates a premium in contrast to its industry's Forward P/E of 20.01.

Also, we should mention that TSN has a PEG ratio of 0.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Food - Meat Products industry stood at 0.41 at the close of the market yesterday.

The Food - Meat Products industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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