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Anheuser-Busch Inbev (BUD) Stock Sinks As Market Gains: What You Should Know

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Anheuser-Busch Inbev (BUD - Free Report) closed at $53.38 in the latest trading session, marking a -1.62% move from the prior day. This change lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the brewer had lost 6.32% in the past month. In that same time, the Consumer Staples sector lost 4.83%, while the S&P 500 lost 2.86%.

Investors will be hoping for strength from Anheuser-Busch Inbev as it approaches its next earnings release. The company is expected to report EPS of $0.89, up 9.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $15.96 billion, up 5.78% from the prior-year quarter.

BUD's full-year Zacks Consensus Estimates are calling for earnings of $3.06 per share and revenue of $60.95 billion. These results would represent year-over-year changes of -4.67% and +5.48%, respectively.

Any recent changes to analyst estimates for Anheuser-Busch Inbev should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. Anheuser-Busch Inbev currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Anheuser-Busch Inbev currently has a Forward P/E ratio of 17.75. For comparison, its industry has an average Forward P/E of 17.35, which means Anheuser-Busch Inbev is trading at a premium to the group.

Meanwhile, BUD's PEG ratio is currently 1.64. 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. BUD's industry had an average PEG ratio of 1.86 as of yesterday's close.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 37% 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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