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Anheuser-Busch Inbev (BUD) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest market close, Anheuser-Busch Inbev (BUD - Free Report) reached $60.78, with a -0.1% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.12%.

Coming into today, shares of the brewer had lost 2.58% in the past month. In that same time, the Consumer Staples sector gained 2.04%, while the S&P 500 gained 3.55%.

The investment community will be paying close attention to the earnings performance of Anheuser-Busch Inbev in its upcoming release. In that report, analysts expect Anheuser-Busch Inbev to post earnings of $0.76 per share. This would mark year-over-year growth of 16.92%. Our most recent consensus estimate is calling for quarterly revenue of $14.27 billion, up 0.4% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $3.37 per share and a revenue of $61.81 billion, demonstrating changes of +10.49% and +4.09%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Anheuser-Busch Inbev. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.

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. Within the past 30 days, our consensus EPS projection has moved 4.62% lower. Anheuser-Busch Inbev is currently sporting a Zacks Rank of #4 (Sell).

From a valuation perspective, Anheuser-Busch Inbev is currently exchanging hands at a Forward P/E ratio of 18.06. This signifies no noticeable deviation in comparison to the average Forward P/E of 18.06 for its industry.

Meanwhile, BUD's PEG ratio is currently 1.92. 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 industry currently had an average PEG ratio of 2.14 as of yesterday's close.

The Beverages - Alcohol industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 10% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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