Altria (MO) Gains As Market Dips: What You Should Know
Altria (MO) closed the most recent trading day at $39.55, moving +0.43% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.8%.
Prior to today's trading, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 7.95% over the past month. This has lagged the Consumer Staples sector's gain of 2.83% and the S&P 500's gain of 5.22% 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 October 30, 2020. The company is expected to report EPS of $1.14, up 5.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.49 billion, up 1.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.31 per share and revenue of $20.43 billion, which would represent changes of +2.13% and +3.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. MO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MO is holding a Forward P/E ratio of 9.13. This represents a discount compared to its industry's average Forward P/E of 10.74.
It is also worth noting that MO currently has a PEG ratio of 2.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Tobacco stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Altria Group, Inc. (MO): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.