Back to top

Image: Bigstock

Altria (MO) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Altria (MO - Free Report) closed at $47.49 in the latest trading session, marking a +0.19% move from the prior day. This change lagged the S&P 500's 0.35% gain on the day.

Coming into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 4.74% in the past month. In that same time, the Consumer Staples sector lost 2.12%, while the S&P 500 gained 3.64%.

Investors will be hoping for strength from MO as it approaches its next earnings release, which is expected to be July 29, 2021. In that report, analysts expect MO to post earnings of $1.17 per share. This would mark 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.57 per share and revenue of $21.4 billion. These totals would mark changes of +4.82% and +2.67%, respectively, from last year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 0.03% higher. MO is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MO is holding a Forward P/E ratio of 10.36. For comparison, its industry has an average Forward P/E of 11.29, which means MO is trading at a discount to the group.

Investors should also note that MO has a PEG ratio of 2.59 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Tobacco was holding an average PEG ratio of 1.97 at yesterday's closing price.

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 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Altria Group, Inc. (MO) - free report >>

Published in