On Monday, Tyson Foods Inc. (NYSE:TSN) shares gained about 3.7% after announcing its most recent quarterly results. The company reported its fiscal fourth-quarter revenue and earnings before markets opened, beating the consensus for analyst expectations. TSN also declared a quarterly dividend per share of $0.46, in line with the previous, implying a forward yield of 2.27% based on Friday’s closing price.
Tyson Foods posted FQ4 non-GAAP earnings per share of $2.30, beating the average analyst estimate of $2.22. In addition, its GAAP EPS of $3.71 was $1.51 ahead of estimates, while revenue for the quarter grew by 20.4% from the same quarter in 2020 to $12.81 billion, surpassing expectations by $120 million.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Although Tyson Foods shares are up more than 20% over the last three months, the stock is up just over 32% this year, in line with the S&P 500 Index. Therefore, there could be room left for more upward movement.
Is Tyson Foods still undervalued?
From a valuation perspective, Tyson Foods shares trade at attractive trailing 12-month and forward P/E ratios of 13.26 and 12.08, respectively. Therefore, the stock could be a compelling option for value investors.
On the other hand, analysts expect its earnings per share to decline by more than 11% next year, before rising at an average annual rate of about 7.5% for the next five years.
Therefore, growth investors could opt to monitor the performance before betting on the stock.
Technically, Tyson Foods shares seem to be trading within a consolidative triangle formation that is nearing an upward breakout. As a result, the stock has rallied closer to the overbought conditions of the 14-day RSI.
However, investors could still target extended gains due to its attractive valuation multiples. Therefore, they could target profits at about $87.67, or higher at $90.92, while $80.93 and $77.52 are crucial support levels.
It may not be too late to buy TSN shares
In summary, although Tyson Foods stock seems to have rallied more than 20% since August, it seems to be matching the S&P 500 Index gains, thus implying there could be more room for improvement.
Therefore, given its exciting valuation, it may not be too late to buy the stock.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- Skilling, simple, easy to use and regulated. Register here >
