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

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The latest trading session saw Tyson Foods (TSN - Free Report) ending at $59.74, denoting a -1.22% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.38% for the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 1.24%.

Shares of the meat producer witnessed a loss of 5.97% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 1% and the S&P 500's gain of 1.17%.

Investors will be eagerly watching for the performance of Tyson Foods in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.78, marking a 13.04% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $13.48 billion, indicating a 1.18% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.51 per share and a revenue of $54.37 billion, demonstrating changes of +13.23% and +1.98%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Tyson Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. Tyson Foods presently features a Zacks Rank of #2 (Buy).

Investors should also note Tyson Foods's current valuation metrics, including its Forward P/E ratio of 17.24. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 17.24.

It's also important to note that TSN currently trades at a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TSN's industry had an average PEG ratio of 0.91 as of yesterday's close.

The Food - Meat Products industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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