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

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The latest trading session saw Anheuser-Busch Inbev (BUD - Free Report) ending at $60.24, denoting a -0.77% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.23%.

Heading into today, shares of the brewer had gained 0.95% over the past month, lagging the Consumer Staples sector's gain of 1.72% and the S&P 500's gain of 1.5% in that time.

The investment community will be closely monitoring the performance of Anheuser-Busch Inbev in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.76, reflecting a 16.92% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.36 billion, up 1.03% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.37 per share and revenue of $61.81 billion, which would represent changes of +10.49% and +4.09%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Anheuser-Busch Inbev. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 shifted 4.04% downward. At present, Anheuser-Busch Inbev boasts a Zacks Rank of #4 (Sell).

With respect to valuation, Anheuser-Busch Inbev is currently being traded at a Forward P/E ratio of 18.02. Its industry sports an average Forward P/E of 17.79, so one might conclude that Anheuser-Busch Inbev is trading at a premium comparatively.

One should further note that BUD currently holds a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Beverages - Alcohol industry stood at 2.15 at the close of the market yesterday.

The Beverages - Alcohol industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 233, this industry ranks in the bottom 8% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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