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

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Altria (MO - Free Report) closed at $49.78 in the latest trading session, marking a +0.69% move from the prior day. This change outpaced the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 0.4%.

Prior to today's trading, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 14.84% over the past month. This has outpaced the Consumer Staples sector's gain of 0.96% and the S&P 500's gain of 0.91% in that time.

Investors will be hoping for strength from MO as it approaches its next earnings release, which is expected to be April 29, 2021. The company is expected to report EPS of $1.04, down 4.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.94 billion, down 2.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.57 per share and revenue of $21.41 billion. These totals would mark changes of +4.82% and +2.71%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for MO. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. MO is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, MO is holding a Forward P/E ratio of 10.91. This represents a discount compared to its industry's average Forward P/E of 11.75.

Investors should also note that MO has a PEG ratio of 2.73 right now. 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 1.84 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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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