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Altria (MO) Gains As Market Dips: What You Should Know

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In the latest trading session, Altria (MO - Free Report) closed at $43.01, marking a +0.21% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.71%. Meanwhile, the Dow lost 1.7%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Coming into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 5.73% in the past month. In that same time, the Consumer Staples sector lost 6.72%, while the S&P 500 lost 8.68%.

Investors will be hoping for strength from Altria as it approaches its next earnings release, which is expected to be October 27, 2022. In that report, analysts expect Altria to post earnings of $1.31 per share. This would mark year-over-year growth of 7.38%. Meanwhile, our latest consensus estimate is calling for revenue of $5.65 billion, up 2.13% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.85 per share and revenue of $20.85 billion. These totals would mark changes of +5.21% and -1.22%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Altria currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Altria is holding a Forward P/E ratio of 8.85. This valuation marks a discount compared to its industry's average Forward P/E of 9.01.

Investors should also note that MO has a PEG ratio of 1.36 right now. 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. The Tobacco industry currently had an average PEG ratio of 1.1 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% 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.

To follow MO in the coming trading sessions, be sure to utilize Zacks.com.


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