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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 $50.88, moving +0.18% from the previous trading session. This change outpaced the S&P 500's 0.13% loss on the day.

Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 5.57% over the past month, outpacing the Consumer Staples sector's loss of 0.04% and the S&P 500's gain of 2.07% in that time.

Wall Street will be looking for positivity from MO as it approaches its next earnings report date. This is expected to be October 28, 2021. In that report, analysts expect MO to post earnings of $1.27 per share. This would mark year-over-year growth of 6.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.82 billion, up 2.56% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.62 per share and revenue of $21.32 billion, which would represent changes of +5.96% and +2.3%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MO has a Forward P/E ratio of 11.01 right now. Its industry sports an average Forward P/E of 11.01, so we one might conclude that MO is trading at a no noticeable deviation comparatively.

Investors should also note that MO has a PEG ratio of 2.75 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 industry currently had an average PEG ratio of 2.08 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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