Altria (MO) closed at $51.13 in the latest trading session, marking a -0.49% move from the prior day. This move lagged the S&P 500’s daily gain of 0.15%.
Prior to today’s trading, shares of the owner of Philip Morris USA, the nation’s largest cigarette maker had gained 9.42% over the past month. This has outpaced the Consumer Staples sector’s gain of 5.75% and the S&P 500’s gain of 6.19% in that time.
MO will be looking to display strength as it nears its next earnings release, which is expected to be April 29, 2021. The company is expected to report EPS of $1.04, down 4.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.97 billion, down 1.47% from the year-ago period.
MO’s full-year Zacks Consensus Estimates are calling for earnings of $4.56 per share and revenue of $21.38 billion. These results would represent year-over-year changes of +4.59% and +2.61%, respectively.
Investors might also notice recent changes to analyst estimates for MO. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 0.19% lower. MO currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MO is currently trading at a Forward P/E ratio of 11.26. Its industry sports an average Forward P/E of 12.09, so we one might conclude that MO is trading at a discount comparatively.
Meanwhile, MO’s PEG ratio is currently 2.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Tobacco was holding an average PEG ratio of 1.92 at yesterday’s closing price.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Altria Group, Inc. (MO) : Free Stock Analysis Report
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