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Vector Group (VGR) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Vector Group (VGR - Free Report) closed at $13.83, marking a -1.14% move from the previous day. This change lagged the S&P 500's 0.42% gain on the day.

Coming into today, shares of the discount cigarette maker had gained 2.79% in the past month. In that same time, the Consumer Staples sector gained 3.82%, while the S&P 500 gained 7.03%.

VGR will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2021. On that day, VGR is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 48%. Our most recent consensus estimate is calling for quarterly revenue of $651.8 million, up 18.98% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.50 per share and revenue of $2.54 billion, which would represent changes of +150% and +26.74%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for VGR. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. VGR currently has a Zacks Rank of #3 (Hold).

Digging into valuation, VGR currently has a Forward P/E ratio of 9.33. For comparison, its industry has an average Forward P/E of 9.72, which means VGR is trading at a discount to the group.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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