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Anheuser-Busch Inbev (BUD) Dips More Than Broader Market: What You Should Know

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The latest trading session saw Anheuser-Busch Inbev (BUD - Free Report) ending at $53.26, denoting a -1.41% adjustment from its last day's close. This change lagged the S&P 500's 1.34% loss on the day. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.62%.

The the stock of brewer has fallen by 6.02% in the past month, lagging the Consumer Staples sector's loss of 4.69% and the S&P 500's loss of 1.57%.

Market participants will be closely following the financial results of Anheuser-Busch Inbev in its upcoming release. The company's earnings per share (EPS) are projected to be $0.86, reflecting a 6.17% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $15.76 billion, up 4.45% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.03 per share and revenue of $60.73 billion. These totals would mark changes of -5.61% and +5.09%, respectively, from last year.

Any recent changes to analyst estimates for Anheuser-Busch Inbev should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% lower. As of now, Anheuser-Busch Inbev holds a Zacks Rank of #3 (Hold).

In the context of valuation, Anheuser-Busch Inbev is at present trading with a Forward P/E ratio of 17.82. This signifies a premium in comparison to the average Forward P/E of 17.71 for its industry.

It's also important to note that BUD currently trades at a PEG ratio of 1.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 214, which puts 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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