Yahoo Finance Altria (MO) Falls More Steeply Than Broader Market: What Investors Need to Know
Altria (MO) closed the latest trading day at $54.27, indicating a -0.8% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq gained 0.25%.
Shares of the owner of Philip Morris USA, the nation's largest cigarette maker have appreciated by 9.35% over the course of the past month, outperforming the Consumer Staples sector's gain of 3.59% and the S&P 500's gain of 3.42%.
Analysts and investors alike will be keeping a close eye on the performance of Altria in its upcoming earnings disclosure. The company is expected to report EPS of $1.36, up 6.25% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.32 billion, indicating a 0.86% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.10 per share and a revenue of $20.34 billion, representing changes of +3.03% and -0.81%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Altria. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Altria is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Altria is presently trading at a Forward P/E ratio of 10.73. This signifies no noticeable deviation in comparison to the average Forward P/E of 10.73 for its industry.
One should further note that MO currently holds a PEG ratio of 3.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Tobacco industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 20, positioning it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Altria Group, Inc. (MO) : Free Stock Analysis Report
