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Tyson Foods (TSN) Outpaces Stock Market Gains: What You Should Know

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Tyson Foods (TSN) closed the most recent trading day at $87.20, moving +1.77% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.21%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.16%.

Coming into today, shares of the meat producer had lost 0.72% in the past month. In that same time, the Consumer Staples sector gained 0.75%, while the S&P 500 gained 3.2%.

Tyson Foods will be looking to display strength as it nears its next earnings release, which is expected to be August 8, 2022. The company is expected to report EPS of $1.88, down 30.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.36 billion, up 7.03% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.07 per share and revenue of $52.5 billion, which would represent changes of +9.54% and +11.59%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Tyson Foods. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.68% lower within the past month. Tyson Foods is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Tyson Foods's current valuation metrics, including its Forward P/E ratio of 9.44. This valuation marks a premium compared to its industry's average Forward P/E of 9.26.

Investors should also note that TSN has a PEG ratio of 1.26 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TSN's industry had an average PEG ratio of 1.26 as of yesterday's close.

The Food - Meat Products industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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