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Anheuser-Busch Inbev (BUD) Stock Slides as Market Rises: Facts to Know Before You Trade

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Anheuser-Busch Inbev (BUD - Free Report) ended the recent trading session at $52.54, demonstrating a -0.49% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 0.39%.

Heading into today, shares of the brewer had lost 6.08% over the past month, outpacing the Consumer Staples sector's loss of 7.01% and lagging the S&P 500's loss of 3.39% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Anheuser-Busch Inbev in its upcoming earnings disclosure. The company is expected to report EPS of $0.86, up 6.17% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $15.74 billion, indicating a 4.31% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.03 per share and a revenue of $60.69 billion, representing changes of -5.61% and +5.03%, respectively, from the prior year.

Any recent changes to analyst estimates for Anheuser-Busch Inbev should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 1.01% downward. Right now, Anheuser-Busch Inbev possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Anheuser-Busch Inbev is at present trading with a Forward P/E ratio of 17.45. Its industry sports an average Forward P/E of 17.48, so one might conclude that Anheuser-Busch Inbev is trading at a discount comparatively.

Investors should also note that BUD has a PEG ratio of 1.61 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. BUD's industry had an average PEG ratio of 1.84 as of yesterday's close.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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