Tyson Foods (TSN) Exceeds Market Returns: Some Facts to Consider

Tyson Foods (TSN) closed at $59.70 in the latest trading session, marking a +2.61% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.15%. Meanwhile, the Dow experienced a rise of 1.38%, and the technology-dominated Nasdaq saw an increase of 1.38%.

Shares of the meat producer have depreciated by 8.89% over the course of the past month, outperforming the Consumer Staples sector's loss of 10.55%, and lagging the S&P 500's loss of 5.69%.

Investors will be eagerly watching for the performance of Tyson Foods in its upcoming earnings disclosure. In that report, analysts expect Tyson Foods to post earnings of $0.81 per share. This would mark a year-over-year decline of 11.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.78 billion, up 5.4% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.88 per share and revenue of $56.72 billion, which would represent changes of -5.83% and +4.19%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tyson Foods. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Tyson Foods possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Tyson Foods is currently being traded at a Forward P/E ratio of 14.99. This indicates a premium in contrast to its industry's Forward P/E of 12.22.

Investors should also note that TSN has a PEG ratio of 1.28 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Food - Meat Products stocks are, on average, holding a PEG ratio of 1.28 based on yesterday's closing prices.

The Food - Meat Products industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 28% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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