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

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Altria (MO - Free Report) closed the most recent trading day at $40.87, moving -1.61% from the previous trading session. This change lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 2.51%.

Prior to today's trading, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 0.17% over the past month. This has lagged the Consumer Staples sector's gain of 1.13% and the S&P 500's gain of 3.73% in that time.

Wall Street will be looking for positivity from MO as it approaches its next earnings report date. This is expected to be July 28, 2020. The company is expected to report EPS of $1.03, down 6.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.06 billion, down 2.56% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.25 per share and revenue of $20.37 billion, which would represent changes of +0.71% and +2.88%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. MO is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that MO has a Forward P/E ratio of 9.77 right now. This represents a discount compared to its industry's average Forward P/E of 11.25.

We can also see that MO currently has a PEG ratio of 1.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Tobacco industry currently had an average PEG ratio of 1.95 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.

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


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