Altria (MO) Stock Dips While Market Gains: Key Facts
In the latest market close, Altria (MO) reached $46.42, with a -0.06% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day. Meanwhile, the Dow experienced a drop of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Shares of the owner of Philip Morris USA, the nation's largest cigarette maker witnessed a gain of 2.11% over the previous month, beating the performance of the Consumer Staples sector with its loss of 0.36% and underperforming the S&P 500's gain of 2.83%.
The investment community will be paying close attention to the earnings performance of Altria in its upcoming release. The company's upcoming EPS is projected at $1.34, signifying a 2.29% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.35 billion, indicating a 1.69% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and a revenue of $20.41 billion, representing changes of +3.23% and -0.45%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Altria. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Altria currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Altria currently has a Forward P/E ratio of 9.09. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 9.09.
One should further note that MO currently holds a PEG ratio of 2.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Tobacco industry currently had an average PEG ratio of 1.87 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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