Tyson Foods (TSN) closed at $52.02 in the latest trading session, marking a -1.42% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.49% for the day. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 2.26%.
The meat producer's stock has dropped by 9.76% in the past month, falling short of the Consumer Staples sector's loss of 1.56% and the S&P 500's gain of 0.1%.
Investors will be eagerly watching for the performance of Tyson Foods in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.82, indicating a 28.7% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.36 billion, up 3.58% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.65 per share and revenue of $56.26 billion, indicating changes of -11.41% and +3.34%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Tyson Foods should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.59% decrease. Tyson Foods is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Tyson Foods is currently trading at a Forward P/E ratio of 14.46. This denotes a premium relative to the industry average Forward P/E of 13.35.
Also, we should mention that TSN has a PEG ratio of 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Food - Meat Products was holding an average PEG ratio of 1.67 at yesterday's closing price.
The Food - Meat Products industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 246, placing it within the bottom 1% of over 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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).