In the latest trading session, Altria (MO - Free Report) closed at $43, marking a -1.35% move from the previous day. This change lagged the S&P 500's daily gain of 1.27%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.87%.
Prior to today's trading, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 2.4% over the past month. This has outpaced the Consumer Staples sector's gain of 1.93% and the S&P 500's gain of 0.37% in that time.
MO will be looking to display strength as it nears its next earnings release. In that report, analysts expect MO to post earnings of $1.14 per share. This would mark year-over-year growth of 5.56%. Meanwhile, our latest consensus estimate is calling for revenue of $5.45 billion, up 0.62% from the prior-year quarter.
MO's full-year Zacks Consensus Estimates are calling for earnings of $4.31 per share and revenue of $20.37 billion. These results would represent year-over-year changes of +2.13% and +2.92%, respectively.
Any recent changes to analyst estimates for MO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. MO is currently a Zacks Rank #3 (Hold).
Investors should also note MO's current valuation metrics, including its Forward P/E ratio of 10.12. This valuation marks a discount compared to its industry's average Forward P/E of 11.32.
Also, we should mention that MO has a PEG ratio of 2.53. 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. Tobacco stocks are, on average, holding a PEG ratio of 2.43 based on yesterday's closing prices.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow MO in the coming trading sessions, be sure to utilize Zacks.com.