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Anheuser-Busch Inbev (BUD) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Anheuser-Busch Inbev (BUD - Free Report) closed at $56.20, marking a +1.12% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 9.29%.

Heading into today, shares of the brewer had gained 0.78% over the past month, lagging the Consumer Staples sector's gain of 2.32% and the S&P 500's gain of 2.65% in that time.

Investors will be hoping for strength from Anheuser-Busch Inbev as it approaches its next earnings release. In that report, analysts expect Anheuser-Busch Inbev to post earnings of $0.70 per share. This would mark a year-over-year decline of 6.67%. Our most recent consensus estimate is calling for quarterly revenue of $15.5 billion, up 4.77% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.16 per share and revenue of $61.7 billion, which would represent changes of -1.56% and +6.77%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Anheuser-Busch Inbev. 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.

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 has moved 1.25% lower. Anheuser-Busch Inbev is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Anheuser-Busch Inbev currently has a Forward P/E ratio of 17.61. Its industry sports an average Forward P/E of 19.48, so we one might conclude that Anheuser-Busch Inbev is trading at a discount comparatively.

Investors should also note that BUD has a PEG ratio of 1.6 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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