Back to top

Image: Bigstock

Altria (MO) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Altria (MO - Free Report) closed the most recent trading day at $55.85, moving +1.4% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.59%. On the other hand, the Dow registered a gain of 1.39%, and the technology-centric Nasdaq increased by 1.63%.

The the stock of owner of Philip Morris USA, the nation's largest cigarette maker has risen by 6.87% in the past month, leading the Consumer Staples sector's gain of 3.7% and the S&P 500's loss of 2.42%.

Analysts and investors alike will be keeping a close eye on the performance of Altria in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.18, signifying a 2.61% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.66 billion, down 1.11% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.32 per share and a revenue of $20.48 billion, signifying shifts of +3.91% and +0.18%, respectively, from the last year.

Any recent changes to analyst estimates for Altria should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.52% lower. Altria presently features a Zacks Rank of #3 (Hold).

Investors should also note Altria's current valuation metrics, including its Forward P/E ratio of 10.36. This expresses no noticeable deviation compared to the average Forward P/E of 10.36 of its industry.

We can additionally observe that MO currently boasts a PEG ratio of 2.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Tobacco stocks are, on average, holding a PEG ratio of 2.78 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Altria Group, Inc. (MO) - free report >>

Published in