Altria (MO) Stock Sinks As Market Gains: What You Should Know
Altria (MO) closed at $47.77 in the latest trading session, marking a -0.71% move from the prior day.
In the latest trading session, Altria (MO) closed at $47.77, marking a -0.71% move from the previous day. This change lagged the S&P 500's daily gain of 1.78%. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.95%.
Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 9.37% over the past month, outpacing the Consumer Staples sector's gain of 2.41% and the S&P 500's loss of 2.63% in that time.
Wall Street will be looking for positivity from Altria as it approaches its next earnings report date. On that day, Altria is projected to report earnings of $1.09 per share, which would represent year-over-year growth of 10.1%. Our most recent consensus estimate is calling for quarterly revenue of $5.04 billion, down 0.24% from the year-ago period.
MO's full-year Zacks Consensus Estimates are calling for earnings of $4.61 per share and revenue of $21.03 billion. These results would represent year-over-year changes of +5.73% and +0.93%, respectively.
It is also important to note the recent changes to analyst estimates for Altria. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Altria is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Altria currently has a Forward P/E ratio of 10.43. For comparison, its industry has an average Forward P/E of 10.65, which means Altria is trading at a discount to the group.
It is also worth noting that MO currently has a PEG ratio of 2.61. 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. The Tobacco industry currently had an average PEG ratio of 1.96 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 11% of all 250+ industries.
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.
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