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Tyson Foods (TSN) Gains As Market Dips: What You Should Know

Zacks Equity Research

Tyson Foods (TSN) closed at $80.39 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.9%. Elsewhere, the Dow lost 1.05%, while the tech-heavy Nasdaq lost 0.79%.

Heading into today, shares of the meat producer had lost 3.24% over the past month, lagging the Consumer Staples sector's gain of 1.93% and the S&P 500's gain of 1.52% in that time.

Investors will be hoping for strength from TSN as it approaches its next earnings release, which is expected to be August 5, 2019. On that day, TSN is projected to report earnings of $1.47 per share, which would represent a year-over-year decline of 2%. Our most recent consensus estimate is calling for quarterly revenue of $11.11 billion, up 10.51% from the year-ago period.

TSN's full-year Zacks Consensus Estimates are calling for earnings of $5.97 per share and revenue of $42.90 billion. These results would represent year-over-year changes of -3.08% and +7.12%, respectively.

Any recent changes to analyst estimates for TSN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Within the past 30 days, our consensus EPS projection remained stagnant. TSN is currently a Zacks Rank #3 (Hold).

Investors should also note TSN's current valuation metrics, including its Forward P/E ratio of 13.32. Its industry sports an average Forward P/E of 15.16, so we one might conclude that TSN is trading at a discount comparatively.

The Food - Meat Products industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.

To follow TSN in the coming trading sessions, be sure to utilize Zacks.com.


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