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

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In the latest trading session, Anheuser-Busch Inbev (BUD - Free Report) closed at $57.60, marking a -1.01% move from the previous day. This move lagged the S&P 500's daily gain of 0.39%.

Heading into today, shares of the brewer had lost 0.03% over the past month, lagging the Consumer Staples sector's gain of 3.36% and the S&P 500's gain of 3.16% in that time.

Wall Street will be looking for positivity from Anheuser-Busch Inbev as it approaches its next earnings report date. On that day, Anheuser-Busch Inbev is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 8%. Our most recent consensus estimate is calling for quarterly revenue of $15.49 billion, up 4.73% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $61.62 billion, which would represent changes of -2.18% and +6.64%, respectively, from the prior year.

Any recent changes to analyst estimates for Anheuser-Busch Inbev should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% lower. Anheuser-Busch Inbev is currently a Zacks Rank #4 (Sell).

In terms of valuation, Anheuser-Busch Inbev is currently trading at a Forward P/E ratio of 18.51. This valuation marks a discount compared to its industry's average Forward P/E of 20.18.

We can also see that BUD currently has a PEG ratio of 1.68. 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. The Beverages - Alcohol was holding an average PEG ratio of 2.26 at yesterday's closing price.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% 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.

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


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