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

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Altria (MO - Free Report) closed at $42.87 in the latest trading session, marking a +0.75% move from the prior day. This move outpaced the S&P 500's daily gain of 0.08%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq lost 0.29%.

Coming into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 3.78% in the past month. In that same time, the Consumer Staples sector gained 2.91%, while the S&P 500 gained 3.8%.

MO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1, down 1.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.86 billion, up 1.28% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.37 per share and revenue of $20.65 billion. These totals would mark changes of +3.55% and +4.3%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for MO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.07% lower within the past month. MO is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note MO's current valuation metrics, including its Forward P/E ratio of 9.74. This valuation marks a discount compared to its industry's average Forward P/E of 11.39.

Meanwhile, MO's PEG ratio is currently 2.43. 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. 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 group has a Zacks Industry Rank of 83, putting it in the top 33% 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.

To follow MO in the coming trading sessions, be sure to utilize Zacks.com.


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