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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 $48.03, marking a -0.23% move from the previous day. This change lagged the S&P 500's 0.08% loss on the day.

Prior to today's trading, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 0.7% over the past month. This has was narrower than the Consumer Staples sector's loss of 2.61% and the S&P 500's loss of 1.81% in that time.

Investors will be hoping for strength from MO as it approaches its next earnings release, which 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%. Our most recent consensus estimate is calling for quarterly revenue of $5.82 billion, up 2.56% from the year-ago period.

MO's full-year Zacks Consensus Estimates are calling for earnings of $4.62 per share and revenue of $21.32 billion. These results would represent year-over-year changes of +5.96% and +2.3%, respectively.

It is also important to note the recent changes to analyst estimates for MO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MO is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MO is holding a Forward P/E ratio of 10.43. For comparison, its industry has an average Forward P/E of 11.12, which means MO is trading at a discount to the group.

It is also worth noting that MO currently has a PEG ratio of 2.61. 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. MO's industry had an average PEG ratio of 2.01 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.

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


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