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Anheuser-Busch Inbev (BUD) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw Anheuser-Busch Inbev (BUD - Free Report) ending at $65.07, denoting a -0.11% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.02%.

The the stock of brewer has risen by 3.74% in the past month, lagging the Consumer Staples sector's gain of 6.15% and overreaching the S&P 500's gain of 3.52%.

The upcoming earnings release of Anheuser-Busch Inbev will be of great interest to investors. The company is expected to report EPS of $0.80, down 18.37% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $15.44 billion, indicating a 5.25% growth compared to the corresponding quarter of the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Anheuser-Busch Inbev. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.37% lower. Anheuser-Busch Inbev currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Anheuser-Busch Inbev is currently exchanging hands at a Forward P/E ratio of 18.15. This expresses a premium compared to the average Forward P/E of 16.72 of its industry.

Also, we should mention that BUD has a PEG ratio of 1.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Beverages - Alcohol industry currently had an average PEG ratio of 1.98 as of yesterday's close.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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