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Anheuser-Busch Inbev (BUD) Beats Stock Market Upswing: What Investors Need to Know

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In the latest market close, Anheuser-Busch Inbev (BUD - Free Report) reached $54.55, with a +1.7% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.43% for the day. Elsewhere, the Dow saw an upswing of 0.19%, while the tech-heavy Nasdaq appreciated by 0.71%.

The brewer's stock has dropped by 4.52% in the past month, falling short of the Consumer Staples sector's loss of 3.69% and the S&P 500's loss of 2.1%.

The investment community will be closely monitoring the performance of Anheuser-Busch Inbev in its forthcoming earnings report. The company is predicted to post an EPS of $0.86, indicating a 6.17% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.76 billion, indicating a 4.45% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $3.03 per share and a revenue of $60.73 billion, demonstrating changes of -5.61% and +5.09%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Anheuser-Busch Inbev. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.41% lower. Anheuser-Busch Inbev is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Anheuser-Busch Inbev is presently trading at a Forward P/E ratio of 17.69. This indicates a premium in contrast to its industry's Forward P/E of 17.5.

One should further note that BUD currently holds a PEG ratio of 1.63. 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. As the market closed yesterday, the Beverages - Alcohol industry was having an average PEG ratio of 1.82.

The Beverages - Alcohol industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 219, positioning it in the bottom 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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