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Altria (MO) Outpaces Stock Market Gains: What You Should Know

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Altria (MO - Free Report) closed at $64.63 in the latest trading session, marking a +1.51% move from the prior day. This change outpaced the S&P 500's 0.56% gain on the day. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq lost 0.38%.

Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 3.06% over the past month, outpacing the Consumer Staples sector's loss of 0.98% and the S&P 500's loss of 6.76% in that time.

MO will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. On that day, MO is projected to report earnings of $0.95 per share, which would represent year-over-year growth of 4.4%. Our most recent consensus estimate is calling for quarterly revenue of $4.85 billion, up 23.32% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.99 per share and revenue of $19.65 billion. These totals would mark changes of +18.05% and +4.99%, respectively, from last year.

Any recent changes to analyst estimates for MO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 0.11% lower within the past month. MO is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that MO has a Forward P/E ratio of 15.95 right now. This represents a premium compared to its industry's average Forward P/E of 14.32.

Also, we should mention that MO has a PEG ratio of 1.81. 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. MO's industry had an average PEG ratio of 1.93 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 39% 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.

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


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