Tyson Foods (TSN) closed at $61.21 in the latest trading session, marking a +0.91% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.13%. At the same time, the Dow lost 1.33%, and the tech-heavy Nasdaq lost 0.13%.
The the stock of meat producer has fallen by 0.21% in the past month, lagging the Consumer Staples sector's gain of 0.72% and overreaching the S&P 500's loss of 6.3%.
The investment community will be paying close attention to the earnings performance of Tyson Foods in its upcoming release. The company is slated to reveal its earnings on May 5, 2025. The company is predicted to post an EPS of $0.85, indicating a 37.1% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.1 billion, up 0.2% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.82 per share and revenue of $53.76 billion. These totals would mark changes of +23.23% and +0.85%, respectively, from last year.
Investors should also pay attention to any latest changes in 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% decrease. As of now, Tyson Foods holds a Zacks Rank of #3 (Hold).
In the context of valuation, Tyson Foods is at present trading with a Forward P/E ratio of 15.88. Its industry sports an average Forward P/E of 12.99, so one might conclude that Tyson Foods is trading at a premium comparatively.
It's also important to note that TSN currently trades at a PEG ratio of 0.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Food - Meat Products stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.
The Food - Meat Products industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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This article originally published on Zacks Investment Research (zacks.com).
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