Tyson Foods (TSN) Stock Slides as Market Rises: Facts to Know Before You Trade
Tyson Foods (TSN) ended the recent trading session at $52.55, demonstrating a -1.04% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.22%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.32%.
Shares of the meat producer witnessed a gain of 2.23% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 3.22% and outperforming the S&P 500's gain of 1.61%.
The upcoming earnings release of Tyson Foods will be of great interest to investors. The company's earnings report is expected on February 5, 2024. The company is forecasted to report an EPS of $0.38, showcasing a 55.29% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $13.3 billion, up 0.31% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.26 per share and a revenue of $52.6 billion, demonstrating changes of +68.66% and -0.53%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Tyson Foods. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Tyson Foods holds a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Tyson Foods is at present trading with a Forward P/E ratio of 23.52. For comparison, its industry has an average Forward P/E of 19.25, which means Tyson Foods is trading at a premium to the group.
Also, we should mention that TSN has a PEG ratio of 0.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Food - Meat Products industry stood at 2.3 at the close of the market yesterday.
The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
To follow TSN in the coming trading sessions, be sure to utilize Zacks.com.
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Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
