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Anheuser-Busch Inbev (BUD) Rises But Trails Market: What Investors Should Know

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The latest trading session saw Anheuser-Busch Inbev (BUD - Free Report) ending at $62.39, denoting a +0.48% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.76%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 1.12%.

Prior to today's trading, shares of the brewer had lost 3.92% over the past month. This has lagged the Consumer Staples sector's gain of 4.52% and the S&P 500's gain of 2.5% in that time.

The upcoming earnings release of Anheuser-Busch Inbev will be of great interest to investors. In that report, analysts expect Anheuser-Busch Inbev to post earnings of $0.80 per share. This would mark a year-over-year decline of 18.37%. Our most recent consensus estimate is calling for quarterly revenue of $15.34 billion, up 4.6% from the year-ago period.

Any recent changes to analyst estimates for Anheuser-Busch Inbev should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.53% fall in the Zacks Consensus EPS estimate. Anheuser-Busch Inbev presently features a Zacks Rank of #3 (Hold).

Investors should also note Anheuser-Busch Inbev's current valuation metrics, including its Forward P/E ratio of 17.5. This indicates a premium in contrast to its industry's Forward P/E of 16.24.

Investors should also note that BUD has a PEG ratio of 1.76 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Beverages - Alcohol industry was having an average PEG ratio of 1.92.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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