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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 $41.59, moving -0.45% from the previous trading session. This move lagged the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 1.03%.

Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 2.72% over the past month, lagging the Consumer Staples sector's gain of 0.81% and the S&P 500's gain of 3.13% in that time.

MO will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2021. The company is expected to report EPS of $1, down 1.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.86 billion, up 1.28% from the year-ago period.

Investors should also note any recent changes to analyst estimates for MO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MO is currently a Zacks Rank #3 (Hold).

Digging into valuation, MO currently has a Forward P/E ratio of 9.15. This represents a discount compared to its industry's average Forward P/E of 11.38.

We can also see that MO currently has a PEG ratio of 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Tobacco industry currently had an average PEG ratio of 2.29 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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