Why Tyson Foods (TSN) Outpaced the Stock Market Today

Zacks
15 Apr

Tyson Foods (TSN) closed the latest trading day at $61.57, indicating a +1.7% change from the previous session's end. This change outpaced the S&P 500's 0.79% gain on the day. Elsewhere, the Dow saw an upswing of 0.78%, while the tech-heavy Nasdaq appreciated by 0.64%.

The meat producer's shares have seen an increase of 1.1% over the last month, surpassing the Consumer Staples sector's gain of 0.46% and the S&P 500's loss of 3.56%.

The investment community will be closely monitoring the performance of Tyson Foods in its forthcoming earnings report. The company is scheduled to release its earnings on May 5, 2025. The company's earnings per share (EPS) are projected to be $0.85, reflecting a 37.1% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.1 billion, up 0.2% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.82 per share and revenue of $53.76 billion, which would represent changes of +23.23% and +0.85%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Tyson Foods. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 0.33% lower. Tyson Foods is currently a Zacks Rank #3 (Hold).

Investors should also note Tyson Foods's current valuation metrics, including its Forward P/E ratio of 15.85. This represents a premium compared to its industry's average Forward P/E of 12.93.

It's also important to note that TSN currently trades at a PEG ratio of 0.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Food - Meat Products industry had an average PEG ratio of 0.83.

The Food - Meat Products industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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