Altria (MO) closed the most recent trading day at $41.11, moving +0.05% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 4.66% over the past month, lagging the Consumer Staples sector's loss of 0.32% and the S&P 500's gain of 4.12% in that time.
Wall Street will be looking for positivity from MO as it approaches its next earnings report date. This is expected to be January 28, 2021. The company is expected to report EPS of $1, down 1.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.86 billion, up 1.28% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for MO. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. MO is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MO currently has a Forward P/E ratio of 9. For comparison, its industry has an average Forward P/E of 11.35, which means MO is trading at a discount to the group.
Also, we should mention that MO has a PEG ratio of 2.25. 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. MO's industry had an average PEG ratio of 2.25 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Altria Group, Inc. (MO) : Free Stock Analysis Report
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