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

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Altria (MO - Free Report) closed the most recent trading day at $49.90, moving +0.04% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.18%.

Coming into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 1.09% in the past month. In that same time, the Consumer Staples sector gained 1.8%, while the S&P 500 gained 0.04%.

Investors will be hoping for strength from MO as it approaches its next earnings release. On that day, MO is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 7.34%. Our most recent consensus estimate is calling for quarterly revenue of $5.4 billion, up 6.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.59 per share and revenue of $21.4 billion, which would represent changes of +5.28% and +2.67%, respectively, from the prior year.

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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.32% lower. MO is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that MO has a Forward P/E ratio of 10.87 right now. This valuation marks a discount compared to its industry's average Forward P/E of 11.91.

It is also worth noting that MO currently has a PEG ratio of 2.72. 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 1.99 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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