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

Zacks Equity Research

Tyson Foods (TSN) closed the most recent trading day at $81.38, moving -0.06% from the previous trading session. This change lagged the S&P 500's 0.46% gain on the day. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq added 0.59%.

Heading into today, shares of the meat producer had lost 1.33% over the past month, lagging the Consumer Staples sector's gain of 0.77% and the S&P 500's gain of 4.04% in that time.

Wall Street will be looking for positivity from TSN as it approaches its next earnings report date. This 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.11 billion, up 10.51% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.97 per share and revenue of $42.90 billion. These totals would mark changes of -3.08% and +7.12%, respectively, from last year.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. TSN is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, TSN is currently trading at a Forward P/E ratio of 13.65. This valuation marks a discount compared to its industry's average Forward P/E of 16.19.

The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% 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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