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Altria (MO) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Altria (MO - Free Report) closed at $47.02, marking a -0.47% move from the previous day. This move lagged the S&P 500's daily loss of 0.11%.

Coming into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 4.78% in the past month. In that same time, the Consumer Staples sector lost 0.91%, while the S&P 500 gained 2.23%.

Investors will be hoping for strength from MO as it approaches its next earnings release, which is expected to be July 29, 2021. 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 $4.57 per share and revenue of $21.4 billion, which would represent changes of +4.82% and +2.67%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MO. Recent revisions tend to reflect the latest 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 sporting a Zacks Rank of #3 (Hold).

Digging into valuation, MO currently has a Forward P/E ratio of 10.33. Its industry sports an average Forward P/E of 11.57, so we one might conclude that MO is trading at a discount comparatively.

We can also see that MO currently has a PEG ratio of 2.58. 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 1.99 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% 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.


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